The invention discloses a reciprocating independent lubrication two-stroke engine and an operating method thereof. The reciprocating independent lubrication two-stroke engine comprises a cylinder sleeve, a piston, an upper cylinder cover, a connecting rod, a crankshaft, an air inlet, an oil atomizer, a spark plug, an exhaust valve and a crankcase, and further comprises a lower cylinder cover, a piston arm, an air storage tank, an oil pump plunger rod, a one-way air inlet valve, a one-way air outlet valve, a one-way oil suction valve and a one-way oil outlet valve. According to the reciprocating independent lubrication two-stroke engine, the traditional structure that an air inlet, an air suction port and an exhaust valve of an existing two-stroke engine are designed on the side wall of a cylinder, and the wall of the cylinder can not be directly lubricated with lubrication oil is changed, the air inlet, an air suction port and the exhaust valve are designed at the two ends of a cylinder, an air pumping structure and an oil pumping structure are added, and thus a good lubrication effect is achieved. The defects of poor emission, poor economy, poor lubrication and a short service life of a two-stroke engine are effectively overcome, and meanwhile the advantages of high power density, a compact and simple structure and the like of a two-stroke engine are retained.