The invention discloses a pixel circuit for top-emitting AMOLED panel and driving method thereof. The pixel circuit comprises: first TFT (T1), connected to first node(G), second node(S) and third node(D); second TFT(T2), connected to scan signal(Scan), first node(G) and data signal(Data1); third TFT(T3), connected to scan signal(Scan), second node(S) and reference voltage(Ref); fourth TFT(T4), connected to scan signal(Scan), third node(D) and high voltage power source(Data2); first capacitor(Cst), connected to first node(G) and second node(S); second capacitor(C), connected respectively to third node(D) and reference voltage(Ref); OLED, connected to second node(S) and low voltage power source(VSS); the voltage difference between high voltage power source(Data2) and low voltage power source(VSS) maintaining unchanged. The invention also provides a corresponding driving method. The invention can effectively relieve the IR voltage drop caused by increased impendence of the transparent cathode.