A crystal oscillator and a phase noise reduction method thereof are provided. The crystal oscillator may include a crystal oscillator core circuit, a first bias circuit and a phase noise reduction circuit, the first bias circuit is coupled to an output terminal of the crystal oscillator core circuit, and the phase noise reduction circuit is coupled to the output terminal of the crystal oscillator core circuit. In operations of the crystal oscillator, the crystal oscillator core circuit is configured to generate a sinusoidal wave. The first bias circuit is configured to provide a first voltage level to be a bias voltage of the sinusoidal wave. The phase noise reduction circuit is configured to reset the bias voltage of the sinusoidal wave in response to a voltage level of the sinusoidal wave exceeding a specific voltage range. For example, the specific voltage range is determined according to a second voltage level.