The invention discloses an ATE (Automatic Test Equipment) digital testing system and a self inspection method thereof. The ATE digital testing system comprises an address generator, a picture memory, an instruction memory, a self-inspection memory and a driver, wherein the address generator is connected with the picture memory, the instruction memory and the self-inspection memory; the self-inspection memory is connected with a bus, and the picture memory is connected with the driver. The self-inspection method disclosed by the invention is capable of effectively solving the part which is not verified by a traditional self-inspection method; pictures for self inspection comprise special instructions such as circulation, skip and block circulation except for plus one, then the moving locus of the pictures is monitored, so as to observe whether addresses change correspondingly according to micro-instructions under high-speed operation or not, so that whether the system performance and partial logic of the micro-instructions are normal or not can be verified; multiple potential problems which can not be discovered by traditional self inspection can be embodied to a greater extent, the factory equipment is relatively stable, the fault rate is relatively small, interference can be excluded more easily with pertinence during field failure, and problems are found.