The invention provides a production method of vanadium-titanium iron powder. The production method includes the following steps that (1), waste steel is smelted in a medium frequency furnace, then steel is tempered with a vanadium-titanium alloy, and thus smelted vanadium-titanium molten steel is prepared from the chemical compositions of 0.1-0.5% of V, 0.06-0.6% of Ti, 0.4% of C, 0.40% or the less of Si, 0.4% or the less of Mn, 0.005% or the less of P and 0.005% or the less of S; (2) the smelted vanadium-titanium molten steel in the step (1) is injected into an atomized feeding tank, and thecompositions are constantly adjusted to be controlled as 0.1-0.5% of V, 0.06-0.6% of Ti, 0.15-0.4% of C, 0.4% or the less of Si, 0.4% or the less of Mn, 0.005% or the less of P and 0.001% or the lessof S, and the temperature is 1650-1680 DEG C; (3), the vanadium-titanium molten steel in the step (2) enters an atomizer for atomization; and (4), after atomization and hopper, the vanadium-titanium molten steel is sent to a magnetic separation drying line for magnetic separation, drying, annealing, screening and packaging to obtain atomized vanadium-titanium iron powder. According to the production method of the vanadium-titanium iron powder, production of the vanadium-titanium atomized iron powder with various performance standards can be achieved, the production process is simple, the quality of the obtained base powder is improved compared with the prior art, and a good raw material for downstream production is provided.