The invention provides an all-wheel-drive hybrid electric vehicle and a control method thereof. The all-wheel-drive hybrid electric vehicle comprises front wheels, rear wheels, a hub motor, an engine, an ISG (integrated starter generator) motor, a clutch, an inverter and a power battery, the hub motor is connected with the front wheels and used for driving the same, the engine is connected with the rear wheels through a speed changer and used for driving the rear wheels, the ISG motor is connected between the engine and the speed changer and used for driving the rear wheels, the clutch is connected between the engine and the ISG motor, the inverter is connected with the hub motor and the ISG motor respectively, and the power battery is connected with the inverter and used for powering the hub motor and the ISG motor. According to the all-wheel-drive hybrid electric vehicle, performance in climbing, starting, accelerating and the like of the vehicle is improved, pure electric drive of four wheels is realized, a front driving device is simplified, oil consumption and emission are lowered, and fuel economy of the vehicle is improved.