The invention discloses a manufacturing method of a high-conductivity high-strength aluminum alloy wire for a smart power grid. The method includes the steps that firstly, an aluminum alloy continuous casting and continuous rolling unit with an on-line purification system is used for conducting machining to obtain a supersaturated aluminum alloy rod; secondly, natural aging is conducted on the supersaturated aluminum alloy rod; thirdly, cold drawing is conducted on the aluminum alloy rod obtained in the second step to form an aluminum alloy wire; fourthly, the aluminum alloy wire is placed into a continuous aging oven for manual aging strengthening treatment; and fifthly, multiple wires obtained through the fourth step are concentrically twisted, and the performance of the twisted high-strength aluminum alloy wire meets the conditions that the tensile strength is not smaller than 340 MPa, the elongation is not smaller than 5.0%, the 20 DEG C direct current resistant rate is not higher than 0.031927 ohm.mm2/m, and the electric conductivity is not smaller than 54.0%IACS. The wire obtained through the manufacturing method has the characteristics of being high in tension-weight ratio, good in electric conductivity and high in overload resistance; the process is simple; and the method is suitable for industrial production, can greatly save line construction cost and operation cost when applied to the smart power grid field, and has excellent economic benefits.