The invention discloses a micro relief visual illusion vertical grain structure of a knitted fabric and a knitting method thereof. The structure comprises a front plain stitch structure and a reverseplain stitch structure. The front plain stitch structure is composed of close lap front face coils, the reverse plain stitch structure is composed of close lap reverse face coils, the close lap frontface coils and the close lap reverse face coils are staggered longitudinally, and the colors of yarn adopted by the close lap front face coils and the close lap reverse face coils are different; the invention further discloses the micro relief visual illusion vertical grain structure of the knitted fabric and the knitting method thereof, due to the mode that the plain stitch knitting, turning stitch stacking of different-color yarn are alternately performed on front and back needle beds of a flat knitting machine, and staggered knitting is performed to form the vertical grain compound structure and the needed pattern. According to the micro relief visual illusion vertical grain structure of the knitted fabric and the knitting method thereof, the structure characteristics of the vertical grain structure are used for obtaining the unique visual illusion and micro relief appearance effect, the interestingness of the knitted fabric is improved, the high aesthetic value is obtained, and deeper and wider development space is supplied to knitted product design development and marketing.