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This application discloses an inertial integral positioning and downhole constraint correction method and system based on a miniature downhole sensor. The method includes: acquiring triaxial angular velocity and triaxial acceleration data from the miniature downhole sensor; recursively obtaining predicted position, predicted velocity, and predicted attitude based on quaternion attitude calculation and inertial integral algorithm; constructing a wellbore spatial constraint model based on known wellbore trajectory and wellbore diameter parameters, and constructing a fluid property constraint model based on downhole fluid property parameters; generating the two types of constraint correction quantities independently and without coupling; employing an error state Kalman filter framework to filter and update the two types of correction quantities as observation information, and injecting the error state into the nominal state to output a three-dimensional motion trajectory estimate. This method continuously corrects inertial positioning drift by introducing wellbore and fluid constraint information, achieving usable positioning results for the sensor even without external positioning signals.