The invention discloses a method for estimating junction temperature on line by an IGBT (Insulated Gate Bipolar Transistor) power module. The method comprises the following steps: estimating the junction temperature by using a thermo-sensitive electrical parameter method; establishing an extended state space thermal model; and applying a Kalman filter in junction temperature estimation. The thermosensitive electrical parameter method can estimate the junction temperature of an IGBT power module in real time, an IGBT conduction voltage drop VCE (ON) is selected as a thermosensitive electrical parameter, and a VCE (ON) online measurement circuit is provided. On the basis of a Foster thermal network model, the influence of diode coupling is considered, and an extended state space thermal model comprising self-heating and coupling heat is provided; And taking the power loss of the diode and the IGBT and the junction temperature estimation value obtained by using the thermosensitive electrical parameter method as the input of the Kalman filter, and considering the measurement noise and the process noise, thereby obtaining the optimal junction temperature estimation value. According to the method, electrical insulation is achieved, measurement is carried out without changing a control strategy of the power converter, noise is reduced, the intermittent influence of voltage measurementis eliminated, and the junction temperature measurement precision is improved.