The invention discloses a cast aluminum alloy with pinholes removed and a smelting method thereof. The smelting method comprises the steps of: firstly, heating an aluminum ingot or molten aluminum for completely melting the aluminum ingot or molten aluminum; adding Si, Fe, Cu, Mn, Mg, Zn and Ti, and completely dissolving and melting the added components; refining, and maintaining the temperature at 700-1000 DEG C to obtain alloy melt; degassing and purifying the alloy melt by using nitrogen or inert gas or mixed gas of nitrogen and inert gas at any ratio, and persistently introducing the gas until reaction is finished; simultaneously adding MoB and LiAlH4 powder to the alloy melt in a fluidized manner along with the gas; stirring to make MoB and LiAlH4 be uniformly distributed in the alloy melt and sufficiently react with the alloy melt; and standing, adjusting the temperature to 680-730 DEG C, discharging the molten alloy out of a furnace and carrying out casting production. According to the cast aluminum alloy with pinholes removed and the smelting method thereof, the defects of the performance of the traditional aluminum alloy are overcome, the tenacity, forming performance andhardenability of the aluminum alloy are improved, and high-grade base materials are provided for high-efficiency deep processing.