The invention provides a multifunctional frozen soil model test device and a test method thereof. The multifunctional frozen soil model test device comprises a box body unit, a monitoring unit and a loading unit positioned in the center of the box body unit; the box body unit comprises a bottom plate and an enclosure plate detachably mounted in the periphery of the bottom plate, and is used for filling a foundation and placing a test foundation component in the foundation; one end of the loading unit is fixed to the enclosure plate, and the other end of the loading unit is connected with the test foundation component, and the loading unit is used for applying downward pressing and upward pulling force to the test foundation component in the vertical direction; a refrigeration unit is arranged in the inner side of the enclosure plate and externally connected with a low-temperature cold bath device, and the monitoring unit is connected with the foundation the loading unit and the refrigeration unit in the box body unit. The test device provided by the invention is formed by combining the bottom plate with the enclosure plate, each component is light in weight and convenient to carry,the refrigeration unit is directly arranged in the box body unit, and the refrigeration unit is adjusted to meet the test requirement for environment condition.