An information safety protection system for power terminal equipment comprises a password input module, an image acquisition module, a power module, a mobile terminal, a central control system, a recognition and analysis module, a storage module and an alarm module. The power supply module is connected with the password input module and the image acquisition module. And the password input module,the image acquisition module, the mobile terminal, the recognition analysis module, the storage module and the alarm module are respectively connected with the central control system. The invention further discloses a protection method of the power terminal equipment information safety protection system. When the system is used, at least two workers input passwords, collect information of the workers and compare the information with the information in the background storage module, and authentication succeeds and the protection system can be unlocked only when the collected information and theinput passwords are completely matched with the information in the background storage module; therefore, the information leakage of the power terminal equipment is effectively prevented, and the management level of the power terminal equipment is improved.