The invention discloses a method for manufacturing an environment-friendly insecticide with nerium indicum and radix euphorbiae lantu. The method includes manufacturing nerium indicum extracts, to be more specific, cleaning and airing fresh nerium indicum leaves, cutting the nerium indicum leaves to obtain fragments, drying the fragments in drying ovens, smashing the fragments, mixing the fragments and ethanol with one another to obtain mixtures, then processing the mixtures by the aid of microwave, then soaking the mixtures for 48h, then filtering the mixtures, extracting nerium indicum leaf extracts from the mixtures and carrying out water-bath distillation to recycle the ethanol; manufacturing radix euphorbiae lantu extracts, to be more specific, cleaning and airing fresh radix euphorbiae lantu, cutting the radix euphorbiae lantu to obtain fragments, drying the fragments in drying ovens at the temperatures of 60 DEG C, then smashing the fragments, mixing the fragments and ethanol with one another to obtain mixtures, then processing the mixtures by the aid of microwave, then soaking the mixtures for 50h, then filtering the mixtures, extracting the radix euphorbiae lantu extracts from the mixtures and carrying out water-bath distillation to recycle the ethanol; uniformly mixing the nerium indicum extracts and the radix euphorbiae lantu extracts with one another according to a proportion of 3:1 to obtain mixtures, and then adding antibiotics into the mixtures for preservation.