An athermal arrayed wavelength grating (AWG) with temperature compensation and a manufacturing method thereof. The athermal AWG comprises: a bottom plate (105, 205), an AWG chip (101), and a temperature compensation component (111, 211). The bottom plate comprises a first bottom plate part (106, 206) and a second bottom plate part (107, 207). The temperature compensation component (111, 211) allows the first bottom plate part (106, 206) and the second bottom plate part (107, 207) constituting the bottom plate (105, 205) to move parallel to each other in the plane of the bottom plate (105, 205). The AWG chip (101) is cut into a first chip part (102) and a second chip part (103) capable of moving relative to each other. The first chip part (102) and the second chip part (103) are respectively fixed on the first bottom plate part (106, 206) and the second bottom plate part (107, 207). Relative movement in a direction perpendicular to the bottom plate (105, 205) is therefore avoided, greatly lowering risks of loss and change. The invention has the advantages of low insertion loss, being capable of realizing a Gaussian or flat spectrum, being able to use a conventional AWG chip used for thermal AWG packaging, and the like.