Provided are a bamboo fiber and mulberry silk blended yarn towel and a production process thereof. The bamboo fiber and mulberry silk blended yarn towel comprises a base cloth layer and wool warps, wherein the base cloth layer is formed by body warps and weft yarns, and the wool warps penetrate through interweaving holes formed by the body warps and the weft yarns to form terry layers on one surface or two surfaces of the base cloth layer. The wool warps are blended yarns formed by bamboo fibers and the mulberry silk, and the body warps and the weft yarns of the base cloth layer are pure cotton yarns or pure mulberry silk yarns or blended yarns formed by cotton and the mulberry silk. The production process comprises the steps of yarn warping, warp sizing, machine weaving, dyeing treatment, cutting, sewing and finishing and the like. The towel not only integrates soft and smooth features, good air permeability, moisture absorption and moisture releasability of the bamboo fibers and the mulberry silk and outstanding antibacterial and health-care effects, but also has the advantages of being high in abrasion resistance and strength, long in service life, low in price and the like. The novel product with high quality and price benefits and the appropriate production process of the novel product are provided for towel textile fabrics.