The invention provides Bluetooth equipment and a working method thereof. Different equipment types are realized by setting equipment MAC addresses and broadcasting equipment types; when the equipmentis used as Bluetooth keyboard equipment; a dynamic password input function can be realized; the equipment converts the obtained dynamic password value into Bluetooth keyboard type virtual key information according to a Bluetooth keyboard protocol. Virtual key information is automatically sent to the upper computer in sequence, and the equipment can automatically recover the type of the equipment,so that the problem of keyboard conflict between the keyboard equipment and the upper computer is solved, the error rate of inputting a dynamic password on the upper computer by a user is reduced, andthe safety of identity authentication is improved.