An oxyhalide luminescent material doped with rare earth containing metal particles is provided. The formula thereof is Re′1-xRe″xOX: yM, in which Re′ is the first rare earth element, Re″ is the second rare earth element, X is F, Cl or Br, M is metal nanoparticles, x is 0.001-0.15, and y is 5×10−5-2×10−3. A method for producing the luminescent material is also provided. By virtue of metal particles introduced into the oxyhalide luminescent material doped with rare earth and the surface plasma resonance effect of the metal surface, the luminescence intensity of the oxyhalide luminescent material is improved. The good stability, uniform appearance and excellent luminescence intensity of the luminescent material ensure its application in field emission devices. The production method has advantages of simplicity in operating, pollution-free, easy control, less demanding for equipment and suitability for industrialized production.