The embodiment of the invention discloses an LED structure and a manufacturing method thereof. The method includes the following steps: providing a graphical substrate; forming a buffer layer on the surface of the substrate by using a physical vapor deposition process, wherein the buffer layer includes a hydrogen-containing aluminum nitride buffer layer; and forming an epitaxial structure on one side of the buffer layer facing away from the substrate. Thereby, the problem that in an existing LED structure manufacturing method, after the aluminum nitride buffer layer is formed, many aluminum residues still exist in a reaction chamber, the crystal quality of the subsequently formed epitaxial structure is affected, and the photoelectric performance of an LED device is reduced can be solved; the lattice stress between the substrate and the epitaxial structure can also be improved, so that the surface temperature field of the epitaxial structure of an LED can be uniform, the uniformity of the wavelength of the light emitted by the LED structure can be greatly improved, and meanwhile, the quantum-confined Stark effect on quantum wells can be reduced, so that the luminous performance of the finally formed LED can be improved, the brightness can be increased, and the leakage current can be reduced.