The invention relates to a polishing solution and a polishing method of silicon carbide crystals. The polishing solution comprises the following components in percentage by weight: 6-10% of nanoscalepolycrystalline diamond, 75-87% of alkaline silica sol, 1-2% of a silane coupling agent, 1-3% of an anti-crystallization agent, 1-2% of an oxidant, and the balance of amphiphilic organic matter. The polishing solution of the invention has the advantages of good wet spreading performance, high soft layer removal rate, being not prone to crystallization, and the like, and therefore polishing for silicon carbide solves the problems of low polishing rate and poor polishing effect. In addition, as the polishing solution is used in combination with a coarse grinding fluid and a fine grinding fluid,a high-speed, high-flatness, high-gloss, low-roughness polishing effect can be achieved.