The invention belongs to the technical field of metal smelting, and particularly relates to a novel efficient magnesium smelting reduction tank and a manufacturing method thereof. The novel efficient magnesium smelting reduction tank comprises a tank body, a top head and a cooling water jacket, the tank body is formed by centrifugal casting, one end of the tank body is in welded connection with the top head, the other end of the tank body is welded with the cooling water jacket in a riveting mode, the tank body and the top head comprise, by weight, 0.03-0.07% of C, 20-27% of Cr, 8-12% of Ni, 2-3% of Al, 1-2% of Si, 0-0.03% of Re, 0-0.03% of S, 0-0.03% of P, and the balance Fe. By the adoption of the reasonable manufacturing process, chrome, nickel, tungsten, manganese and other beneficial elements are added, the contents of harmful elements like carbon, sulfur and phosphorus are controlled, a novel Fe-Cr-Ni-Al dual-phase heat resisting alloy is researched, the heat resisting temperature of the alloy is improved to 1200-1280 DEG C, the superior castability and weldability are obtained, the good mechanical performance and high-temperature oxidation resistance performance are obtained at high temperature, and the service life is more than twice that of similar products.