A hub reduction mechanism comprises a primary reduction part, a secondary reduction part, a steering part and a wheel part, wherein the steering part is connected with the primary reduction part and the secondary reduction part through an intermediate shaft and a fixing device of the steering part, the inside of the primary reduction part and the inside of the secondary reduction part are meshed through a gear to transfer power, a primary reduction box is arranged on a secondary reduction box through a step on the secondary reduction box, and the wheel part is connected with the secondary reduction part through an output shaft. The hub reduction mechanism is large in transmission ratio and compact in structure, is assembled on a four-wheel driving and independent steering vehicle and used for connecting a transfer case and wheels, and can perform two-stage reduction. By means of the hub reduction mechanism, the wheels have enough traction performance and good driving characteristics, so that technical requirements of ensuring driving ability of the vehicle on conventional roads and improving trafficability characteristics and control ability of the vehicle under severe environments are met.