This invention provides a method for upgrading the network rate of a Passive Optical Network (PON), which mainly includes: upgrading the optical fiber line rate of the central office device, and adapting, by the network terminal device, the working rate of the upstream/downstream line automatically to the optical fiber line rate of the central office device according to a downstream data flow transmitted from the central office device. Using the method of this invention, the network rate of the PON can be upgraded without replacing the network terminal and without a manual intervention.