The present invention provides a simulator and simulation method for multi-functional VR human-computer interaction and external environment. The simulator includes: a base, a bottom rotating seat, an outer ring, an inner ring, a seat and a controller; Located inside the outer ring, the inner ring is connected with an inner ring driving motor for driving the inner ring to rotate in the X-Z plane; the seat is fixedly installed inside the inner ring; the The controller is respectively connected with the bottom rotating motor, the hydraulic pump, the outer ring drive motor and the inner ring drive motor; wherein, the X axis and the Y axis form a horizontal plane, and the Z axis is an axis perpendicular to the horizontal plane. It has the following advantages: the participants can control themselves to the greatest extent, and obtain the best self-perception in the real environment through the trajectory of the simulator, which not only has strong practicability and safety, but also significantly improves the participants' real experience.