The invention discloses an amorphous alloy transformer with a circular iron core and a short-circuit-resistant structure, and a manufacturing method thereof. Each iron core column is a circle formed by combining four single iron cores which are the same in structure and have right-angled stepped sections, and side columns on the two sides are semicircles formed by combining two right-angled stepped single iron cores which are the same in structure; and coils are mounted on the three main columns to form a transformer body. The method comprises the following steps: adopting a three-phase five-column structure; designing a manufacturing tool; optimally designing upper and lower clamping piece structures; assembling the main column iron core and the side column iron cores by using the manufacturing tool, opening the openings of the main column iron core and the side column iron cores, vertically placing the lower parts of the main column iron core and the side column iron cores on the manufacturing tool in a manner that the openings face upwards, and sleeving the coils into the iron cores from top to bottom after the iron cores are arranged; and after the iron core lamination is finished, installing the upper clamping piece and the lower clamping piece, and overturning the transformer body once to make the iron cores opened downwards and suspended on the coils. The production timeis shortened, a large amount of manufacturing cost is saved, the coil sudden short circuit passing rate is increased, and the state grid high-standard requirement is better met.