The invention relates to a sliver alloy bonding wire for LED packaging, wherein the sliver alloy bonding wire is characterized by comprising by weight: 2-3.5% of a first additive, 10-30 ppm of a second additive, and the balance of sliver, wherein the first additive is palladium, and the second additive is one or a combination comprising a plurality of materials selected from gold, platinum, calcium, magnesium and iron. The present invention further provides a manufacturing method of the sliver alloy bonding wire for LED packaging. The manufacturing method comprises: (1) casting to obtain a wire material; (2) drawing, wherein the wire material is drawn to obtain a silver alloy bonding wire with a diameter of 18-50 [mu]m, and intermediate annealing is performed on the wire material during the drawing process when the drawing diameter is 0.9100-0.0384 mm; and (3) finally annealing, wherein the sliver alloy bonding wire is subjected to final annealing after completing the drawing, and cooling is performed to obtain the sliver alloy bonding wire for LED packaging. According to the present invention, the sliver alloy bonding wire is used for LED packaging, the bonding degree between the FAB and LED bonding pad can be enhanced during the ball bonding can be enhanced, the residual gold is more, and the reliability of the LED packaging product is improved.