The invention relates to a machining and manufacturing method of a heat exchanger. The machining and manufacturing method comprises the following steps that A, the lower plane of an upper tube plate is machined; b, performing assembly welding and flaw detection on the upper tube plate and the top pup joint; c, all the machining faces, except for the lower plane of the upper tube plate, of the upper tube plate assembly are machined; d, drilling the upper tube plate and the lower tube plate; e, a plurality of other pup joints are subjected to assembly welding, flaw detection and heat treatment; f, the upper tube plate assembly and the short section assembly are installed, welded and subjected to flaw detection; g, mounting a pull rod, a sleeve and a baffle plate in the barrel; h, mounting a heat exchange tube in the barrel in a penetrating manner; i, assembling the lower tube plate; j, the tube heads are welded to the upper tube plate and the lower tube plate respectively, and the following sequence is adopted during welding: the tube heads of the heat exchange tubes adjacent to the pull rods are welded firstly, and then the remaining tube heads are subjected to regional cross symmetric welding; k, mechanically cutting off the extension part of the pipe head; l, performing local heat treatment; and M, finally installing a sealing head. Therefore, the size precision of the upper tube plate is greatly improved.