The invention provides a paper wrapping machine which comprises a feeding device, a clamping device, a pressing device, a wrapping paper supply device, a rotating device, a lifting device, a transferring device and a numerical control system. The feeding device, the clamping device, the pressing device, the wrapping paper supply device, the rotating device, the lifting device and the transferring device are connected with the numerical control system. The feeding device, the clamping device, the pressing device, the wrapping paper supply device, the rotating device, the lifting device, the transferring device and the numerical control system are installed on a machine frame. A paper wrapping method is further provided. The paper wrapping machine and the paper wrapping method can effectively improve paper wrapping efficiency of a product, reduce labor intensity of workers, eliminate the defect that wrapping paper is uneven and easy to winkle and has bubbles and the like, reduce reject ratio of the product, and improve quality of the product.