The invention discloses a novel lifesaving and position indicating lamp with a positioning communication function and a control method of the novel lifesaving and position indicating lamp. The novel lifesaving and position indicating lamp comprises a non-conductive shell, a compass positioning chip, a compass communication chip, a microprocessor and a luminous body, which are arranged in the shell, a rechargeable battery pack which is used for supplying power to the microprocessor, the luminous body and the compass positioning module, a battery which is used for supplying power to the compass communication module, a memory, a three-axis acceleration sensor, a power button which is arranged on the shell, a display, a state indicator lamp, a falling-into-water switch, an RF (radio frequency) antenna which is connected with the compass communication chip and a luminous body switch which is electrically connected with the luminous body, wherein the microprocessor is electrically connected with the compass positioning chip, the compass communication chip, the state indicator lamp, the power button, the memory, the display, the three-axis acceleration sensor and the luminous body respectively. The novel lifesaving position indicating lamp has the characteristics that smooth linkage between long lifesaving distance and short lifesaving distance is realized; the lifesaving efficiency is improved; the survival rate of a person falling into water is improved, and the problem of difficulty in positioning of the person falling into the water is solved.