The invention discloses a composite clean liquid fuel and a production method thereof. The composite clean liquid fuel is prepared from methanol, water, alcohol, acetic acid, natron, aqua ammonia, xylidine, sodium nitrate, and dicyclic diolefine iron. The production method comprises the following steps:1, adding the methanol into the dicyclic diolefine iron, stirring uniformly and mixing fully; 2, adding the natron into the water and stirring uniformly; 3, enabling the two liquids produced in the step 1 and the step 2 to dissolve each other and stirring, and then adding the acetic acid into the liquids and stirring; 4, stirring to enable the aqua ammonia, the xylidine and the sodium nitrate to dissolve one another in sequence, adding the aqua ammonia, the xylidine and the sodium nitrate into the alcohol and stirring uniformly; 5, enabling the two liquids produced in the step 3 and the step 4 to dissolve each other, guiding the liquids into a reaction pot for reaction, and stirring; and 6, deeply filtering the liquid produced in the step 5 through a filter, then inputting the filtered liquid into a softening system for softening treatment, and finally pouring the softened liquid into a storage tank for settlement, so as to obtain the finished product. The composite clean liquid fuel has the advantages of safety, environmental protection, no undesirable odor, easiness in production, low cost and the like, and is suitable to be used as fuel oil for kitchens.