The present disclosure discloses a multi-functional intelligent tunneling apparatus and method for simulating partial excavation of tunnel. The apparatus comprises an operating platform, a multi-functional rotary tunneling system, a precision power propulsion system, an information acquiring and processing system, a digital display control box and a slurry pumping device, wherein, the multi-functional rotary tunneling system includes a plurality of independent operating channels, and can realize multi-functional simulation of a tunnel construction process, including drilling, slurry injecting, and partial excavation under real-time monitoring; under the control of the digital display control box, the precision power propulsion system can realize the fine control of the multi-functional rotary tunneling system by means of hydraulic monitoring and preset advance distance. The present disclosure can simulate partial excavation steps of tunnel well, ranging from drilling, slurry injecting, different partial excavation methods, supporting and data postprocessing and analyzing of test. The operating and testing method are easy, and with high reliability and high degree of automation and intelligence.