The invention relates to a dynamic binary translating method of software-hardware co-design for realizing a virtual machine coprocessor of a processor chip on a hardware level, which comprises a binary translator unit, a TCache manager unit and the like, wherein management and check of the TCache is realized via the hardware, and fast check of the Tcache is realized in from of instructions, further, as the binary translator unit is realized via the hardware, a master processor executing the object instruction avoids necessary switching to translate, and the start time and the Miss time can be relieved well. The software portion comprises load of heterogeneous executable program, execution of the object instruction, optimization of hot codes and the like. Through tightly coupling of hardware and software, coexistence between the overall virtual machine and the original system can be effectively controlled, thereby achieving internal parallelism. Because single processor supports a plurality of instruction sets, instruction compatibility problem of heterogeneous processors is solved, further, compared with the conventional virtual machine with pure software, properties and transparency are increased, and the speed of the virtual machine can be close to the local execution speed.