Production of alanyl glutamine dipeptide compound is carried out by adding L-glutamine into mixed liquid of methylbenzene and water, cooling, adding into sodium hydrate, dissolving L-glutamine, dripping into solution with alpha - halopropacyl halide, methylbenzene and sodium hydrate, regulating pH, reacting, separating organic layer, adding sodium chloride into solution with organic layer separation, regulating pH, adding into concentrated chlorhydric acid, regulating pH, laying aside, filtering, separating out crystal, drying crystal, reacting with ammonia water, controlling temperature and pressure, cooling, de-pressuring, concentrating, adding water, dripping into methyl alcohol, laying aside, filtering, separating out L-alanyl-L-glutamate crude products, purifying and obtaining refined products. It achieves simple process and low cost.