A method of manufacturing a multi-purpose functional agricultural mulching paper is disclosed. The method comprises steps of (a) providing a papermaking material, (b) treating the papermaking material to form a cleaned paper pulp, and (c) adding at least one functional additive into the cleaned paper pulp and treating the cleaned paper pulp to form the multi-purpose functional agricultural mulching paper. The multi-purpose functional agricultural mulching paper of the present invention can be applied in week control, pest control, bacterial control, plant disease control, growing seedling, fertilizer supply and seed sowing to increase the economic benefits.