The invention discloses a full-automatic material packaging production line based on sleeved type inner-outer bags and a packaging method of the full-automatic material packaging production line. The full-automatic material packaging production line comprises a bag fetching and bagging rack, a bag storage table, a bag storage box, a bag clamping and expanding rack, a machine frame, a material platform, an automatic packaging scale, a belt conveyor, a heat-seal bottom plate and a bag sewing device, and further comprises a bag fetching mechanism, a bag arranging mechanism, a bag folding mechanism, a bag clamping mechanism, a bag opening adjusting mechanism, a bag opening mechanism, a bagging mechanism, a rotating mechanism, an outer bag protecting and conveying mechanism, another bag clamping mechanism, a bag expanding mechanism, a bag sealing mechanism, a discharge hopper powdered-sugar sealing device, an air squeezing mechanism, an inner bag transferring mechanism, an opening heat-seal mechanism, an opening cooling sealing mechanism, an outer bag suction cup mechanism, a mechanism for placing the inner bag into the outer bag, and a sewing guide device. By means of the production line, the inner film bag of the sleeved bags can be loaded with small granular materials and then subjected to opening heat-sealing, and opening of the inner film bag of the sleeved bags can also automatically be disposed into the outer woven bag opening. Therefore, the invention further provides an automatic packaging method using the full-automatic material packaging production line.