The invention discloses a regeneration gas cycle recovery apparatus and a method thereof, the method is characterized in that the regeneration gas in a regeneration gas inlet pipeline and a catalyst in the reactor are reacted to increase the activity of the catalyst, the reacted regeneration gas exhaust gas is output from a collection end of the reactor and then is carried out heat exchange through a heat exchanger, then the reacted regeneration gas exhaust gas is introduced in a separation pot, flash evaporation is carried out on the regeneration gas exhaust gas by the separation pot, the gas phase regeneration gas exhaust gas is output from the top of the separation pot, then passes through a gas phase output pipeline and is divided into two flows through a first gas phase output sub pipeline and a second gas phase output sub pipeline, flow in the first gas phase output sub pipeline is used for cycle recovery, flow in the second gas phase output sub pipeline is discharged or combusted; a flow controller calculates according to flow amount in the second gas phase output sub pipeline collected by the first flow transmitter and the proportion of key ingredients in the regeneration gas exhaust gas collected by a gas discharge analyzer, the proportion of the newly introduced regeneration gas to the cycle regeneration gas exhaust gas can be adjusted by a control valve after calculating, so that the key ingredient of the regeneration gas in the reactor is a preset concentration value.