A fabric and a manufacturing method thereof are provided, where the fabric is adapted to a physiological signal detection device. The fabric includes a fabric base layer, a plurality of first yarns and a plurality of second yarns. The first yarns and the second yarns are respectively woven on the fabric base layer to present a fluffy state. The first yarns are electrically conductive. A height of each of the first yarns relative to the fabric base layer is greater than a height of each of the second yarns relative to the fabric base layer, such that the first yarns are electrically conductive between a user and the physiological signal detection device. According to the fabric and the manufacturing method thereof, the fabric is wrapped on the physiological signal detection device to provide a protection effect, which still maintains a smooth detection process of the physiological signal detection device.