The invention discloses a heat-resistant all aluminum alloy conductor and a manufacturing method thereof. The heat-resistant all aluminum alloy conductor comprises the following elements by weight percent: 0.40-0.80% of Mg, 0.05-0.35% of Si, 0.2-0.5% of Zr, 0.15-1.0% of Fe, 0.001-0.2% of B, 0.05-0.35 of rare earth, less than 0.01% of Cu, less than 0.01% of the sum of Ti, V, Mn and Cr, and the balance Al and inevitable impurities. The manufacturing method of the invention comprises the following steps: feeding Al, Mg, Si, Zr, Fe, B and rare earth in a furnace, alloying, stirring, standing, casting, rolling, performing wire drawing, performing artificial ageing treatment and stranding. The heat-resistant all aluminum alloy conductor has excellent heat resistance, light mass, large carrying capability, higher strength, corrosion resistance and abrasion resistance; and the transmission capability of transmission lines is effectively increased and the service lives of the transmission lines are effectively prolonged.