The invention provides an electrolytic grinding device capable of realizing rotary solution feeding and a working method thereof. The electrolytic grinding device comprises a motorized spindle stator and a motorized spindle rotor. A blind hole is formed inside the end, extending outside, of the motorized spindle rotor, the lower end of the motorized spindle rotor is connected with a conductive grinding wheel through a clamping device, a plurality of through holes are formed in the radial direction of the motorized spindle rotor, and a first sealing ring and a second sealing ring are arranged above and below the through holes respectively for sealing the same. An outer cover is arranged on the outer side of the motorized spindle rotor, and middle holes are formed in positions, corresponding to the through holes, of the outer cover. A first bearing and a second bearing are arranged between the motorized spindle rotor and the outer cover. An electrolyte solution passes through the middle holes of the outer cover, enters the inside blind hole from the through holes of the end, extending outside, of the motorized spindle rotor, and then passes a center hole of the clamping device to outflow around from clearances of the conductive grinding wheel and a workpiece. The electrolytic grinding device is low in requirement on pressure and flow of the electrolyte solution, good in solution feeding effect, and particularly suitable for electrolytic grinding of workpieces such as inner holes and inner cavities in special geometrical shapes.