The invention provides a resident load interaction control device and an application method thereof. The device comprises a microprocessor module, a communication module, a storage module, a security module, a metering module, an A/D conversion module, a voltage transformer, and an interactive interface. The method comprises the steps of (1) the expansion interface provided by electrical equipment is inserted to work, (2) the communication with the electrical equipment is carried out, (3) the information exchange with a local network system and a remote network system is carried out, (4) a resident user client controls and operates electrical equipment through a local network, (5) the device implements energy efficiency management on connected electrical equipment, (6) the demand response is performed automatically according to the demand signal or control signal sent by a demand response service system.