The invention discloses coated craft paper and a production method thereof. The coated craft paper comprises a core paper layer; the upper side of the core paper layer is a surface paper layer, and the lower side is a bottom paper layer; a coating layer is arranged on the upper surface of the surface paper layer; the bottom paper layer and the core paper layer are prepared by the steps of: dosing the waste paper, preparing waste paper pulp to obtain non-deinked waste paper pulp, and manufacturing paper through a paper layer to obtain a wet bottom paper layer and a wet core paper layer; the surface paper layer is prepared by the steps of: manufacturing paper through a paper layer by taking the UKP pulp, the non-deinked waste paper pulp or the mixture of the UKP pulp and the non-deinked waste paper pulp as the pulp to obtain a wet surface paper layer; and the wet bottom paper layer, the wet core paper layer and the wet surface paper layer are subjected to the steps of compounding with the coated body paper, preliminary drying, sizing, later drying, paper surface calendering, paper surface coating and after-treatment to obtain the coated craft paper. The available waste paper types are increased, and the fiber source is wider; and meanwhile, the quality of the waste paper pulp is effectively stabilized so as to guarantee the quality stability of the coated body paper and the white-surface craft paper and avoid easy layering, splitting and scaling.