The invention discloses a UO2-metal fuel pellet and a production method thereof. The production method comprises the following steps: S1, weighing the following raw materials in mass percent: 0-2% ofCr2O3, 0-2% of MoO2, 0-2% of ZrO2 and the balance of UO2; S2, ball-milling and uniformly mixing the raw materials to form mixed powder; S3, pressing the mixed powder to form a billet, and performing high-temperature pre-sintering to obtain a solid solution; S4, crushing the solid solution, and performing sieving and ball milling to form granular mixture; S5, doping metal powder into the granular mixture, and performing mixing to ensure that the surface of each granule in the granular mixture is coated with the metal powder; and S6, performing compression molding on the granular mixture doped with the metal powder, and performing densification sintering to obtain the UO2-metal fuel pellet. The UO2-metal fuel pellet disclosed by the invention has the advantages that the thermal conductivityof the pellet is increased by 50% or above due to addition of the metal, the grain size of the pellet is increased, the core temperature of the pellet fuel in service is obviously reduced, the temperature gradient is reduced, the release of fission products of the pellet fuel is inhibited, and the performance of a fuel rod is enhanced.