The invention provides a hydraulic rotating machine capable of improving the wearing performance and the lubricity of the sliding surface of the cylinder and the piston and a manufacturing method thereof. The hydraulic rotating machine(1) comprises a housing (2), a rotating shaft (3), a cylinder body (4), a piston (5), a slipper shoe (6), an inclined plate (7), and a valve plate (8). A cylinder hole (15) passes through the cylinder body (4), and a nitrogen diffusion layer (30) and a nitrogen compound layer (31), which are disposed in the cylinder hole (15) in the cylinder body (4), and are respectively the surface side of the sliding surface of the piston (5). The nitrogen diffusion layer (30) is disposed on a parent metal (34) side made of iron materials of the cylinder body (4), and the nitrogen compound layer (31) is disposed on the nitrogen diffusion layer (30). The parts of the surface sides of the nitrogen compound layer (31) and the nitrogen diffusion layer (30) can be removed to form the nitrogen diffusion layer (30), which can be exposed by removing the nitrogen compound layer (31), and the concave nitrogen compound layer (32), which is provided with the nitrogen compound layer in the concave part, can be provided.