The invention belongs to the field of alloy wire manufacturing, and particularly discloses a precious metal alloy wire for a precision resistor and a manufacturing method thereof. The precious metal alloy wire contains gold, iron, aluminum, ytterbium and palladium, wherein the alloy wire containing the components has the advantages of high resistivity, low resistance temperature coefficient, stable resistance value, small resistance change range, good machining performance and the like; the manufacturing method comprises the steps that firstly, the gold, the iron, the aluminum, the ytterbium and the palladium are prepared and smelted to prepare a precious metal alloy rod; secondly, large deformation machining is carried out on the precious metal alloy rod to prepare a precious metal alloyrough wire, and then heat treatment is carried out on the precious metal alloy rough wire; and then wire drawing preparation, online heat treatment and fine machining are carried out to prepare a finished product of the precious metal alloy wire. The manufacturing method ensures the stability of the alloy components, and avoids the defects such as segregation, a transgranular structure, loosening,air holes generated in a traditional casting mode; and the large deformation machining ensures that the internal crystal grains are refined uniformly, the heat treatment enables alloy elements to befurther separated out, the internal crystal grain structure is stabilized, and the resistivity of the precious metal alloy wire is increased.