The present invention relates to a precise AC resistance measuring instrument and a measuring method thereof. The precise AC resistance measuring instrument comprises a microprocessor, a sine wave oscillator, a frequency divider, a phase controller, a first sine wave generator, a second sine wave generator, a filter, a signal selector, and a phase discriminator. The input end of the frequency divider is connected to the sine wave oscillator. The output end of the frequency divider is connected to the first sine wave generator and the second sine wave generator. The sine wave generated by the first sine wave generator is used as the test signal source of the phase discriminator. The sine wave generated by the second sine wave generator is used as the reference signal source of the phase discriminator. The vector synthesis voltage of a standard resistor and a tested piece is measured through the phase discriminator and is sent to the microprocessor, and the microprocessor calculates the resistance value of the tested piece. According to the precise AC resistance measuring instrument, the classical bridge measurement technology is substituted by the phase discriminator measurement technology, the difference between a common mode current output and a detector converter scale coefficient is eliminated, the measurement is more accurate, the structure is simple, and the cost is low.