Disclosed are a transfer-molded inductor and a manufacturing method thereof. The inductor comprises a magnet formed by transfer molding with a soft magnetic colloid; and a prefabricated coil assembly comprising an air-core coil and electrode sheets connected at two ends of the air-core coil. The method comprises steps of: connecting a prefabricated air-core coil and an electrode sheet by welding to form a coil assembly, and placing the coil assembly in a cavity of a mold; performing transfer molding with a soft magnetic colloid in a gelatinous state so that the coil is entirely buried in the colloid while the electrode sheets at two ends of the air-core coil are at least partially exposed outside the colloid to serve as terminal electrodes; and performing demolding after the colloid is cured to form a magnet, and finishing the terminal electrodes to obtain the inductor.