The invention discloses an automatic cutting machine with a vision alignment function, and a control method thereof. A vision photographing assembly and an alignment calculation system are additionally designed on the basis of the main body frame and system of the existing cutting machine. Before each cutting action, the vision photographing assembly photographs a pre-cut fabric area, shoots a fabric outline position into a picture, and conveys the picture to the alignment calculation system; the alignment calculation system calculates the movement distances of the driven cutting die base and blanking table surface, and the rotation angle of a cutting die disc according to the deviation position of an outline in the picture relative to a reference point; and a PLC drives the cutting die base and the blanking table surface to displace, and drives the cutting die disc to rotate an angle according to the allowance transmitted by the alignment calculation system, so that a cutting die is accurately located above a fabric, and the cutting die is pressed to complete cutting. The system continuously repeats the steps of photographing, offset calculation, and alignment cutting, thus efficiently, accurately and fully automatically completing the cutting working for the fabric.