The invention relates to a cable elevator and a working method thereof, and belongs to the technical field of water pump testing. The cable elevator comprises a main beam, a left longitudinal beam, a right longitudinal beam, a left suspension, a right suspension, a left bearing seat, a right bearing seat, a servo motor, a main shaft, a wire spool, an electric slip ring, a three-phase electric slip ring, a carbon brush rod, a lower beam and a limit switch, wherein the left longitudinal beam and the right longitudinal beam are fixed to the two ends of the main beam correspondingly, and the left suspension and the right suspension are installed below the main beam; and the left suspension and the right suspension are provided with the left bearing seat and the right bearing seat correspondingly, the servo motor is fixed on the left suspension, a motor shaft of the servo motor penetrates through the left bearing seat and is sequentially connected with the main shaft, the wire spool, the right bearing seat and the electric slip ring, the main shaft is provided with the three-phase electric slip ring, the left suspension is provided with the carbon brush rod, the lower beam is fixedly connected with the left suspension and the right suspension, and the limit switch is installed on the lower beam. The cable elevator is simple and reasonable in overall structural design, safe, reliable, convenient to operate, high in applicability and capable of meeting the intelligent production requirement.