The invention discloses a function testing method of a dynamic stability control system and the dynamic stability control system. On one hand, a tester is adopted to simulate multimode data of N plant stations of the dynamic stability control system, and then the data is delivered to a home station main engine through optical fiber; on the other hand, analog quantity, digital quantity, and switching value of the multiple modes are output through the tester to simulate the running state and the fault condition of a home station system, and two kinds of test data are synchronously output, so that all the logical function tests of the dynamic stability control system are achieved. According to the technical scheme, a device information model can be established through quick imaging of upper computer software, and thus multiple test model data files of the logical functions of the home station main engine are established; meanwhile, the dynamic stability control system can automatically complete all the tests of the logical functions of the dynamic stability control system at one time, and provide a detailed PDF test report. According to the function testing method of the dynamic stability control system and the dynamic stability control system, an effective test technological means is provided for the functions of the dynamic stability control system; meanwhile, the testing efficiency and testing quality of a research and development process are greatly improved, and the test of the functions of the dynamic stability control system in a plant and an engineering field are promoted at the same time.