A coarse-grained reconfigurable processor having an improved code compression rate and a code decompression method thereof are provided to reduce a capacity of a configuration memory and reduce power consumption in a processor chip. The coarse-grained reconfigurable processor includes a configuration memory configured to store reconfiguration information including a header storing a compression mode indicator and a compressed code for each of a plurality of units and a body storing at least one uncompressed code, a decompressor configured to specify a code corresponding to each of the plurality of units among the at least one uncompressed code within the body based on the compression mode indicator and the compressed code within the header, and a reconfigurator including a plurality of PEs and configured to reconfigure data paths of the plurality of PEs based on the code corresponding to each unit.