Aiming at the problem in the prior art that a precision seeding machine is low in automation degree, the invention provides an automatic grain seeding machine and an application method thereof. The automatic grain seeding machine comprises a support frame, a seed storing and sowing component, a furrowing component, a compacting mechanism and a control component; the seed storing and sowing component is arranged on the support frame, the furrowing component is arranged on the support frame and is used for ploughing, and the compacting mechanism is arranged on the support frame and is used for compacting the soil after seeds fall into furrows ploughed by the furrowing component. The automatic grain seeding machine is characterized in that the seed storing and sowing component comprises a vibratory seed box, a precision sowing device, a seed guide pipe, a sowing star wheel and a star wheel motor; the precision sowing device is arranged on one side, close to the ground, of the vibratory seed box, the seed guide pipe is arranged at the discharge end of the precision sowing device, and the sowing star wheel is arranged at the discharge end of the seed guide pipe. The automatic grain seeding machine has the advantages that seeding is completed through stirring-type seed discharge of a bi-layer precision sowing member, and accordingly, seeding omission is avoided; the automation degreeis high, no manual intervention is needed, and the working efficiency is improved greatly.