The invention discloses tea with functions of reducing blood sugar and losing weight and a production method thereof. The tea is prepared from the materials such as large bitter gourd, radix polygonati officinalis, bitter physalis pubescens, dandelion, green tea, houttuynia cordata, humifuse euphorbia herb, radix puerariae, winter mulberry leaves, common fenugreek seeds, miracle fruit tree leaves and stevia rebaudiana. The main process comprises the following steps of selecting the materials, drying, crushing, batching, removing impurities, sterilizing, quantifying, and packaging to obtain a finished product. The tea and the production method disclosed by the invention have the beneficial effects that on the basis of the secret prescription handed down from ancestors, by taking and clinical verification of multiple cases as well as continuous summarization and perfection, the formula is more complete, the curative effect is exact, and the effect for the main diseases such as dry throat and thirst, internal-heat consumptive thirst and dysphoric-fever consumptive thirst is obvious; the effects for nourishing yin and moistening dryness, clearing heat and removing toxicity, promoting production of body fluid and quenching thirst, warming kidney and activating yang and eliminating cold and stopping pain are achieved to different degrees; and the tea has the advantages of health care, reduction of blood sugar, weight losing, pure nature and no toxic or side effect and the like.