The invention provides a power equipment monitoring device having the intelligent heat-dissipation function and a monitoring method thereof. The method comprises the steps of initializing, parameter setting, establishing a power service analysis model, hierarchically controlling the output power of a fan at each layer, acquiring the measuring point information of a transformer in real time, sending the information to a real-time database for storage, sending out searching, counting analyzing and/or processing requests to the monitoring device of power equipment according to the requests of users, displaying a result to users in real time after the visualization treatment, and the like. The device is good in real-time performance, effective, high in integration level, good in availability, excellent in scalability, ideal in heat dissipation effect, stable in performance, and simple and convenient in operation.