The invention discloses an automatic regulating apparatus for controller parameters of a servo driver of a motor and a method thereof. The apparatus comprises an inertia identifier, a parameter initial regulator, a parameter checker, a parameter optimizer, a parameter saving and displaying device, a speed controller, a position controller, a torque controller, a PWM (Pulse-Width Modulation) generator and a coded disc. In the invention, the servo driver of an alternating current permanent magnet motor automatically configures the parameters of the position controller and the speed controller according to different rotary inertias of mechanic load, checks and further optimizes the automatically configured parameters through the parameter checker and the parameter optimizer so that the position response and the speed response of the servo driver are relatively optimal. The servo driver of the alternating current permanent magnet synchronous motor automatically regulates the control parameters according to work occasions and achieves ideal control effect. The whole process is manual participation free and completed fully by the servo motor of the alternating current permanent magnet synchronous motor.