The invention relates to a spicy squid and a processing method thereof, belonging to the technical field of seafood processing methods. The spicy squid is characterized in that the spicy squid contains the following ingredients: 3 to 5 parts of squid tube and head, 1 to 3 parts of vegetable oil, 1 to 2 parts of starch, 1 to 3 parts of pollution-free vegetables, 0.01 to 0.3 part of spice and 0.01 to 0.3 part of edible salt according to the mix ratio by weight. The processing method of the spicy squid is characterized in that the processing method comprises the procedures of 1. material selection, 2. grading and decomposition, 3.blanching and cooling, 4. head plugging, 5. segment cutting, 6. processing of vegetables, 7. preparing of seasoning, 8. soup filling, 9. vacuum packaging, 10. high-temperature sterilization, 11. cooling, 12. packaging. The processing method can better maintain the original flavor, the nutrients and the values of the squid, the taste is delicious and easy to be preserved, thereby being characterized by simpleness, convenience, energy conversation, long guarantee period, green, health and high nutritional value.