An electronic device with firmware recovery function includes a connecting port to connect the electronic device to an external device and a BMC. The BMC includes a firmware memory storing firmware data of the BMC and a microprocessor. The microprocessor determines whether the BMC is able to execute the firmware data in the firmware memory, and determines whether a download command for downloading firmware data is received from the external device when the BMC is not able to execute the firmware data in the firmware memory. The microprocessor further reads the firmware data from the external device into a memory space of the microprocessor upon receiving the download command, and recovers the firmware data in the firmware memory by writing the firmware data from the memory space of the microprocessor into the firmware memory. A related method is also provided.