The invention relates to a super-strong and super-toughened ceramic cutter and a manufacturing method thereof. The ceramic cutter comprises the following components in portion by weight: 89 to 95 portions of zirconia, 2 to 8 portions of yttria, and 2 to 4 portions of rare earth oxide. The manufacturing method for the ceramic cutter comprises the following: step 1, mixing and granulating the zirconia, the yttria and the rare earth oxide; step 2, dry-pressing and molding the mixed and granulated raw materials by a press to obtain a blank; step 3, pre-sintering the blank obtained by the dry-pressing and molding at the low temperature to obtain a semi-finished cutter; step 4, thermally treating the semi-finished cutter obtained by the low-temperature pre-sintering at the low temperature; step 5, carrying out plasma high-temperature sintering for the semi-finished cutter which is thermally treated at the low temperature; and step 6, grinding and polishing the semi-finished cutter which is subjected to the plasma high-temperature sintering to obtain a finished cutter. The ceramic cutter has high hardness and good abrasion resistance, and has the remarkable advantages on thermal stability, heat conduction, corrosion resistance, oxidation resistance, high-temperature hardness, high-temperature strength, and the like. The method has the advantages of simple process and high production efficiency, and is favorable for mass mechanized production.