The invention discloses atmospheric pressure plasma equipment for functional finishing of a fabric and application of the atmospheric pressure plasma equipment, and belongs to the field of textile printing and dyeing engineering. The atmospheric pressure plasma equipment comprises a discharging device, a grafting instrument and a transmission device. Under the atmospheric pressure condition, the fabric is subjected to plasma continuous treatment comprising plasma etching and plasma grafting, and the limitation of batch-type processing of vacuum plasma equipment is broken through. The equipmentand method have the advantages that under the anhydrous condition, antibiotic finishing of the fabric is achieved, and the processing process is rapid in reaction, short in consumed time, efficient,environmentally friendly and simple in operation, has a uniform treatment effect and no selectivity for the fabric, and does not change the property of the fabric itself.