The invention provides 980MPa-grade cold-rolled Q&P steel with excellent plasticity and a manufacturing method thereof. The 980MPa-grade cold-rolled Q&P steel comprises the following components of 0.18%-0.21% of C, 1.4%-1.6% of Si, 1.8%-2.1% of Mn, 0.04%-0.06% of Nb, 0.02%-0.05% of Al, less than or equal to 0.01% of P, less than or equal to 0.01% of S and the balance Fe. According to the 980MPa-grade cold-rolled Q&P steel with the excellent plasticity, compared with the prior art, noble metal elements such as Al, Ni and Mo are not added, the content of Mn is relatively low, the Mn element is mainly used for enriching and stabilizing austenite in the austenite, the plasticity of the material is obviously improved, and the product of strength and elongation can reach 25 GPa%; two-phase region annealing is adopted, the annealing temperature is low, and quenching partition treatment can be implemented on an existing continuous annealing production line through adopting an approximate one-step method; and on the other hand, through annealing treatment of the hot-rolled coil, the influence of the alloy element Mn on the material performance is improved, and equipment does not need to betransformed and invested.