The invention provides a multifunctional temperature and humidity monitoring system and a method thereof based on a 433MHz active RFID (radio frequency identification) technology, and the system is mainly applied to the field of temperature and humidity monitoring. The system consists of one or more than one central controller and multiple temperature and humidity acquisition labels which are in wireless connection, wherein the central controller comprises a wireless transceiving module and an MCU (micro control unit) central control module; each temperature and humidity acquisition label comprises a wireless transceiving module and a temperature and humidity sensor; the system is provided with a GPRS (general packet radio service) module used for sending short messages for alarm; and in addition, the system also comprises a GPS positioning module capable of monitoring the position and operation track of a carrier vehicle in real time, sending the short messages and uploading temperature and humidity information to an upper layer control system through the GPRS module. The patent of the invention also comprises a temperature and humidity monitoring method used for collecting and displaying the temperature and humidity information, processing alarm information, sending the alarm information to telephones of related persons through the GPRS module and simultaneously processing the data uploaded by a GPS system.