The invention relates to a method for reducing contact resistance based on low-melting-point metal and an oxide thereof. By coating the low-melting-point metal and the oxide thereof between electric terminals connected with machinery, the contact resistance between the mechanical electric terminals is reduced effectively. The invention further relates to a conductive paste composing of the low-melting-point metal and the oxide thereof. The oxide takes 0.05% to 50% of the total weight of the conductive paste. The low-melting-point metal is one type or a combination of any two types selected from sodium, potassium, lithium, rubidium, cesium, gallium, indium, mercury, lead bismuth alloy, gallium-base binary alloy, gallium-base complex alloy, indium-base alloy, bismuth-base alloy, mercury-base alloy and sodium-potassium alloy which are lower than 200 DEG C in melting point. With the compound of the low-melting-point metal and the oxide thereof as the conducting medium, the method for reducing contact resistance can effectively reduce the contact resistance between the electric terminals connected with the machinery, significantly reduce the contact resistance heat effect, improve transmission efficiency of electric energy and prolong the service life of the machinery. The method for reducing contact resistance based on the low-melting-point metal and the oxide thereof can be widely applied to the technical fields of electric power and energy.