The invention discloses a rotary hydraulic system of an excavator and a control method. The rotary hydraulic system of the excavator comprises a variable displacement plunger pump, an electronic-control power regulator, a first pressure sensor, a pilot pump, a central control unit, a second pressure sensor, a logic shuttle valve, a pilot valve, a reversing valve, a rotary motor, a pilot overflow valve and a main overflow valve. The control method of the system comprises the following steps of presetting a set pressure value Pm and a pilot logic signal of the main overflow valve; reading a pilot signal; comparing the pilot signal with the pilot logic signal to judge whether single rotary action is carried out, if not, keeping the original power of a main pump, or else, entering the next step; reading a pressure value P of the main pump, judging whether the pressure value P is greater than or equal to the set pressure value Pm of the main overflow valve, if not, keeping the original power of the main pump, or else, entering the next step; and adjusting the power of the main pump and reducing the discharge capacity. During the single rotary action of the excavator, the rotary hydraulic system is used for adjusting the power of the main pump, so that the energy is saved by reducing the power under the premise of satisfying the normal operation.