The invention discloses a pseudo-random code system-based laser fuze system and a target identification method thereof. The laser fuze system adopts a six-quadrant detection scheme, and each pair of detection transceiver systems comprises a pseudo-random code generator, an excitation circuit, a laser, a detector, a signal processing circuit, and transmitting and receiving optical systems; the pseudo-random code generator is used for generating a pseudo-code signal with certain code element width and frequency, the pseudo-code signal is modulated to obtain a pseudo-code pulse signal meeting the requirement of pulse width of the laser, and the pseudo-code pulse signal is excited by the excitation circuit to drive the laser to transmit encoded laser pulse; finally, a laser beam irradiates to a target after being collimated or extended by a transmitting optical system, and the optical energy reflected from the target is received by the receiving optical system; meanwhile, the filtering of a filter and the focusing of the light beam are completed, and after the detector completes the photoelectric conversion and the signal preprocessing of the signal processing circuit, an echo pseudo-random coded signal is obtained after threshold comparison.