The invention relates to a capacity and coverage optimization method based on tabu search, which belongs to the technical field of wireless communication. The method comprises steps: according to the initial power of the small base station, an initial value for a capacity and coverage target optimization function is calculated; a tabu search algorithm is adopted for iterative optimization: a solution vector for enabling the target optimization function to be optimal in the neighborhood of the current solution is calculated; if the solution vector enables the target optimization function value to be the optimal so far or not the optimal so far but in a non tabu state, the solution vector is marked as the current solution and is added to a tabu list, or otherwise, the solution vector is eliminated from the neighborhood of the current solution and the sub step of calculating the optimal solution vector in the neighborhood is returned; and after iterative optimization, the transmitting power of the small base station is updated, and the capacity and coverage target optimization function value for the small base station system at the time is outputted. Self optimization of the capacity and the coverage of the small base station system can be realized, the calculation complexity for the iterative optimization is reduced, the network overall performance is optimized and enhanced, and global optimum can be achieved.