The invention discloses a thermoregulation cashmere yarn and a production method thereof. The thermoregulation cashmere yarn is characterized in that the fineness is 33.3-100tex, the thermoregulation cashmere yarn is formed by blending the following components according to mass ratio: 30-60% of thermoregulation fiber, 30-60% of cashmere fiber and 10-30% of third fiber; the thermoregulation fiber is rayon-based thermal-storage thermoregulation fiber, the fineness is 1.7-2.2dtex, and the length is 38-42nm; for the cashmere fiber, the fineness is 14-16mum, and the length is 36-44mm; and the third fiber is modal fiber, polyster fiber or milk protein fiber, the fineness is 1.7-2.2dtex, and the length is 38-42mm. The production method is suitable for the thermoregulation cashmere yarn, and comprises the following steps: respectively producing the thermoregulation fiber, third fiber mixed strips and cashmere strips, then drawing and doubling the mixed strips and the cashmere strips according to design, then roving, finely spinning and spooling the mixed strips and the cashmere strips in sequence, and finally obtaining the thermoregulation cashmere yarn.