The invention discloses a magnesium alloy fluoride-free hydrazine chemical nickel plating solution and a nickel plating process thereof. The nickel plating solution comprises an alkaline fluoride-free hydrazine chemical nickel plating solution and an acidic fluoride-free hydrazine chemical nickel plating solution; the pH value of the alkaline fluoride-free hydrazine chemical nickel plating solution is greater than or equal to 13, and the alkaline fluoride-free hydrazine chemical nickel plating solution consists of nickel chloride, hydrazine, a complexing agent, sodium hydroxide or potassium hydroxide, boric acid or thiourea; the pH value of the acid fluoride-free hydrazine chemical nickel plating solution is 4-6, and the acidic fluoride-free hydrazine chemical nickel plating solution consists of a nickel salt, sodium hypophosphite, citric acid and thiourea. The nickel plating process comprises the following steps: polishing, removing oil and grease, carrying out alkaline washing, pickling, activating, carrying out alkaline fluoride-free hydrazine chemical nickel plating, carrying out acidic fluoride-free hydrazine chemical nickel plating, and passivating. The plating solution is free of fluorine in component, safe in composition, and does not pollute the environment; the service life of the alkaline fluoride-free hydrazine chemical nickel plating solution is long; an outer layer of a composite coating obtained by nickel plating is an amorphous-state nickel phosphorus alloy; and the compact coating is high in compactness, relatively good in corrosion resistance and high in binding force, and has a good industrial application prospect.