The invention discloses a multifunctional operation trolley for a contact line and an operation method thereof, wherein the multifunctional operation trolley for the contact line comprises a front axle, a back axle and a working platform, wherein the front axle is connected together with the back axle through a chassis; a guide wheel supporting mechanism I is arranged on the chassis and further at a position located on one side of the front axle; a guide wheel supporting mechanism II is arranged on the chassis and further at a position located on one side of the back axle; the working platform is connected together with the chassis through a leveling mechanism; the leveling mechanism is used for adjusting the levelness of the working platform during operation or walking; telescopic rotary operation arms are also arranged on the working platform; and an overturn preventing mechanism for preventing generating an overturn during the operation or the working is arranged on the chassis. The multifunctional operation trolley for the contact line is complete in functions, simple in structure, simple and convenient to operate and low in procurement cost and maintenance cost.