Embodiments of the present invention provide a digital-to-analog conversion circuit, where the digital-to-analog conversion circuit includes a signal amplitude detector and a digital-to-analog converter. When the signal amplitude detector detects a low signal amplitude, a first current module in the digital-to-analog converter operates normally and a second current module in the digital-to-analog converter stops operating. In addition, when stopping operating, the second current module is in a state of a third bias voltage and a fourth bias voltage that are generated by a second bias circuit. When the amplitude detector detects a high signal amplitude subsequently, the second current module resumes normal operation. After operating normally, the second current module switches back to a first bias voltage and a second bias voltage that are generated by a first bias circuit. This reduces a nonlinearity problem caused before a second current module resumes normal operation.