The invention discloses an in-groove type helical milling method. The in-groove type helical milling method comprises the following steps of 1, extracting an in-groove type drive wire, dispersing the drive wire into base discrete points, axially offsetting the base discrete points to a top surface of a groove along a cutter so that top discrete points are formed, selecting a cutting feed point, setting an arc-shape cutting feed mode, and carrying out axial and reverse offsetting along the cutter based on the top discrete points according to a helical angle and an axial cutting depth so that a first layer of the discrete points are formed and a first layer of cutter location points are formed further, 2, axially, reversely and orderly offsetting the first layer of cutter location points layer by layer to a penultimate layer along the cutter according to the axial cutting depth so that a middle layer of cutter location points are formed, and 3, setting a helical angle of a last layer of cutter location points to zero degree so that the last layer of cutter location points are formed, setting an arc-shape cutter retracting mode, setting a cutter-axis vector of each one of the cutter location points, and connecting the all cutter location points to obtain an integral milling track of in-groove type helical milling. The in-groove type helical milling method can reduce frequency of cutter retracting, improve cutting stability and improve surface processing quality and processing efficiency.