The present invention discloses a substation inspection robot based centralized monitoring and simulation system, and a method thereof. The system and the method are characterized in that through the three-dimensional modeling technology and the computer graphics technology, the sensor technology and other auxiliary means are used to carry out vivid stimulation on the real centralized monitoring environment in the computer, the virtual environment that can precisely demonstrate the object state model is created to make operators in the virtual space in an immersive sense, so that the monitoring equipment and operating environment are highly visual; with the characteristics of three-dimensional display, real-time interaction, and dynamic simulation, the centralized monitoring of substation environment is really simulated, so that accuracy and convenience are provided to the operation of the dispatcher, and reliability and safety of centralized inspection of equipment are improved; and with large data analysis result display, equipment status trends and centralized scheduling results are clear at a glance, and with the preview and repeat ability of scheduling, safety guarantee is provided to centralized monitoring of the substation.