The invention discloses an inertial navigation cooperative localization method and localization equipment, which can improve localization precision. The method comprises the following steps of step 1, acquiring a first location parameter, a second location parameter and a distance vector from first equipment to second equipment; step 2, according to the current first location parameter, the current second location parameter and the distance vector, calculating a first target location parameter by a first preset algorithm, if a target inertial navigation error of the first equipment is not smaller than a preset error threshold, performing step 3, and if the target inertial navigation error of the first equipment is smaller than the preset error threshold, performing step 4; step 3, according to the first target location parameter, the current second location parameter and the distance vector, calculating a second target location parameter by a second preset algorithm, taking the first target location parameter as a new first location parameter, taking the second target location parameter as a new second location parameter, and performing the step 2; and step 4, outputting a target inertial navigation location of the first equipment.