The invention discloses a vehicle collision avoidance system and a track planning method thereof. The system comprises a forward looking radar, a camera, a vehicle speed sensor, a yaw angular velocity sensor, a sideslip angle sensor, a signal processing module, an electronic control unit (ECU), a throttle controller, a steering controller and a braking controller. When a vehicle is driven, signals which are transmitted by all sensors through the signal processing module are collected in real time by the electronic control unit, the road condition and the vehicle condition of the vehicle at the moment are judged in real time, if hazardous conditions possibly occur, a continuous collision avoidance executable track is generated by the ECU according to a track planning program preset in the ECU, and the related signals are output to the throttle controller, the steering controller and the braking controller for corresponding operations, so that the hazardous conditions are avoided. According to the vehicle collision avoidance system, a driver can be assisted to operate the vehicle in case of an emergency, so that the active driving safety performance can be increased.