The invention relates to a power system of an oil-electricity four-drive hybrid electric vehicle and a control method thereof. The system takes a motor and a dynamo as impendent power sources for driving front driving wheels and rear driving wheels of a vehicle respectively, adopts a motor controller to control the motor to operate, adopts a dynamo controller to control the dynamo to operate, andadopts a whole vehicle controller to control the dynamo controller and the motor controller to operate; according to equipment parameters and operating parameters of the vehicle, the whole vehicle controller determines a drive mode of the vehicle and the switching among different drive modes; and a control mode comprises a self-check mode, a pure motor drive mode, a pure dynamo drive mode, a motor single drive mode, a dynamo single drive mode, a motor-dynamo double-drive mode and a power failure mode. The power system can farthest exert the advantages of the motor and the dynamo, meets requirements under different conditions, and achieves the aims of reducing operating expense, saving energy and protecting environment.