The invention discloses a chip type power inductor and a manufacturing method thereof. The inductor comprises a substrate, an inductance coil, a terminal stud and a dielectric layer, wherein the inductance coil is arranged in the substrate in a stacking manner, and both ends of the inductance coil are respectively connected with the terminal stud; and the dielectric layer is arranged in the substrate and separates the power inductor into an upper layer and a lower layer. After the inductor is formed by adopting a casting process and a lining electrode printing process, a finished product is manufactured through low temperature cofiring. Through the special air gap action of the dielectric layer, the characteristics of the stacking inductor are improved, and the DC bias characteristic and the flow resistance characteristic of the stacking power inductor are increased. Compared with a wound power inductor, the stacking power inductor is easier to reduce element size and thickness. The chip type power inductor is applicable to the development of new electronic elements, fills up the national blankness on such components, and has innovation in the aspects of materials, design, processes, measurement and the like. The product has advanced design, a self-developed process route is adopted, and the performance of the product can reach the international advanced level.