The invention relates to a dynamic positioning and dynamic tracking system of a drag suction dredger and a control method thereof, which belong to the technical field of engineering ship automation. The dynamic positioning and dynamic tracking system of the drag suction dredger comprises a control panel, a programmable logic controller, a heading measurement device, a position measurement device, a wind direction and wind speed measurement device, a ship motion attitude measurement device, a propeller and a steering engine, wherein the control panel is connected with and controls the programmable logic controller, the heading measurement device, the position measurement device, the wind direction and wind speed measurement device, the ship motion attitude measurement device, the propeller and the steering engine. The positioning and dynamic tracking control method aims to detect actual positions and target positions, actual motion directions and target directions of the drag suction dredger and a drag head, controls a thruster on the dredger so as to enable the dredger to be kept at required positions and headings, and accurately controls dredging operation. The dynamic positioning and dynamic tracking system and the control method thereof have the advantages of simple structure, convenience in operation, accurate control, multiple modes, high dredging efficiency and the like.