The invention belongs to the field of manufacture and application of health physioltherapy equipment and relates to a handheld olefin-heated moxibustion device and an application method thereof. The main structure of the handheld olefin-heated moxibustion device comprises a temperature control power controller, an olefin-heated vaporizer, a heat collecting nozzle, a power switch, a USB (universalserial bus) interface, a heating button, a cooling button, a display screen and an output power wire hole, wherein the olefin-heated vaporizer is a radiating far-infrared transmitter for storing and catalyzing moxibustion agent. During application, the moxibustion agent is filled into a filling hole, specifically, a user switches on the temperature control power controller and then fills 30-40 drops of moxibustion vaporization agent or moxibustion permeation therapeutic alcohol into the olefin-heated vaporizer via the filling hole, and then increases the temperature to 75 DEG C through the heating button to accelerate volatilization and vaporization of the moxibustion agent; when feeling heat of the handheld olefin-heated moxibustion device by hands, the user can reduce the temperature to42 DEG C through the cooling button and press the heat collecting nozzle onto skin part to start moxibustion. The handheld olefin-heated moxibustion device has the advantages of being small in size, light weight, low in manufacture cost, simple in structure, convenient to carry, safe and reliable and the like.