The invention discloses a manufacturing method of a molding type self-lubricating knuckle bearing. The manufacturing method comprises the following steps that an outer ring semi-finished product and an inner ring are machined, wherein the outer ring semi-finished product is provided with a through hole; an auxiliary gasket layer is placed in the through hole, the inner ring is placed in the through hole, the auxiliary gasket layer is located between the inner ring and the outer ring semi-finished product, the outer ring semi-finished product is extruded, and the extruded auxiliary gasket layeris filled with a cavity formed between the inner ring and the outer ring semi-finished product; an outer rotative surface of outer ring semi-finished product is machined, two ends of the outer ring semi-finished product are machined to remove margin at the two ends of the outer ring semi-finished product, the auxiliary gasket layer is removed, and a lubricating material is a cavity filled betweenan outer ring and the inner ring. The manufacturing method has the following advantages that the auxiliary gasket layer is introduced, the deformation effect of the outer ring is supported in the extrusion process, so that the shape of extrusion forming shape is accurate, the size precision is high, the outer ring ellipse is small after extrusion, twisting is avoided, the gasket layer can eliminate the gap between the inner ring and the outer ring after extruded, and the coaxiality and the cavity symmetry degree of the inner ring and the outer ring in the extruded machining are easy to control, so that the radial sealing degree and the circumferential sealing degree of the bearing can be accurately controlled.