Embodiments of the application disclose a display panel and a manufacturing method thereof. The driving circuit layer includes an auxiliary electrode, the auxiliary electrode includes a first conductive layer, a second conductive layer, and a third conductive layer that are stacked, the first conductive layer includes a protrusion portion protruding from the second conductive layer, and the third conductive layer includes an overhang portion protruding from the second conductive layer, wherein the overhang portion, the second conductive layer, and the protrusion portion define an undercut space; and the second electrode extends into the undercut space and is connected to the protrusion portion.