The present application provides a display panel and a manufacturing method thereof. In the method for manufacturing a display panel according to the present application, a half-cutting protective strip is provided on the driving circuit functional layer in the half-cutting area, so that the heat will not be conducted to the driving circuit functional layer under the half-cutting protective strip during cutting the layer to be cut by the laser along the half-cutting line, thereby effectively avoiding damage to the driving circuit functional layer, and thus improving the production yield.