The invention relates to live-action information system and method thereof based on a GPS positioning and direction identification technology, comprising a live-action information device, a communication network and an interest database. The live-action information device comprises a camera, a GPS positioning module, a horizontal and vertical direction identification module, a display module, a data storage module and a processing control module, wherein the processing control module is connected with the other six modules. The method comprises the following steps of: picking up an external live-action image by the camera, acquiring current GPS coordinate information by the GPS positioning module, acquiring information by adopting the horizontal and vertical direction identification module, analyzing the information to establish searching criteria, identifying, acquiring points of interest and describing data of the points of interest, transmitting the data to the interest database, and overlying and fusing the information to show the describing information of the points of interest. The invention has the advantages of perfect dynamic fusion of live action and data, lively observation and inquiry to surrounding scenes, precise, convenient and visualized information about directions and distances of the points of interest, and rich content of the surrounding points of interest.