The present disclosure provides a hydrothermal geothermal development method of multilateral well closed circulation, comprises the steps of: dividing a geothermal reservoir into single layers according to geothermal reservoir geological conditions, wherein an upper single layer with a lower water temperature and a higher permeability is taken as a recharge layer, and a lower single layer with a higher water temperature is taken as a production layer; tripping a production casing, and injecting cement for well cementation; performing casing lateral windowing in a vertical hole corresponding to the recharge layer, and drilling several branch radial horizontal holes into the recharge layer; performing casing lateral windowing in the vertical hole corresponding to the production layer, and drilling several branch radial horizontal holes into the production layer; tripping a guiding pipe into the production casing of the vertical hole, with a depth thereof reaching a well section between the recharge layer and the production layer; tripping a packer at a guiding shoe to isolate the guiding pipe and an annulus of the casing from each other, so as to prevent geothermal fluid of the recharge layer and the production layer from being communicated with each other in the vertical hole.