The present invention provides a time-optimal route planning method based on an improved level set algorithm. The method comprises: 1, constructing a three-dimensional route planning environmental space; 2, initializing a level set function as a symbol distance function, and setting the AUV navigation starting point on a zero level set; 3, constructing a level set evolution equation considering the influence of the ocean current on the AUV navigation, and constructing a narrow band at the starting point and setting a prohibited area; 4, evolving a level set function according to the level set equation established in the step 3, and storing the zero level set interface of each time step length; 5, determining whether a target point is in the current narrow-band range or not; 6, reconfiguring the narrow band, and employing an improved fast marching method to reinitialize the level set function to be a symbol distance function; and 7, employing a back iterative equation, obtaining the time-optimal route of the AUV, and outputting an optimal route. Through adoption of an ocean current reanalysis database, the time-optimal route planning method based on the improved level set algorithm generates an ocean current field and fully considers the influence of the ocean current in the route planning to allow the planning route to have high practicality.