The invention relates to a permanent magnet magnetic declination measuring watch and a measurement method. The permanent magnet magnetic declination measuring watch comprises a watch shell, a scale base and a watch base which are connected with two sides of the watch shell, and a non-magnetic declination magnet, wherein the front face of the scale base is provided with a scale ring, which center is provided with a pointer which rotation shaft penetrates through the scale base, a test magnet at the back of the scale base is fixedly connected with the rotation shaft of the pointer, the center of the magnetic pole dividing line of the test magnet is at the rotation shaft of the pointer, the pointer is vertical to the magnetic pole dividing line of the test magnet, the center of the watch base is provided with a rectangle hole for arranging the non-magnetic declination magnet. The measurement method comprises: arranging a non-magnetic declination magnet into the rectangle hole of the measuring watch, adjusting zero, taking out the magnet, arranging an object magnet, considering the index of the pointer as the read number of the magnetic declination of the object magnet. The invention has simple measurement process, virtual magnetic deviation read number, fast identification and improved production efficiency.