The invention discloses a solid pulse plasma thruster with high propellant utilization rate and a working method, and belongs to the technical field of aerospace propulsion of micro-satellites. The solid pulse plasma thruster with high propellant utilization rate comprises a constant-force spring, an upper insulating plate for fixing a propellant, a semiconductor spark plug, a permanent magnet for increasing impulse bit, a cathode plate, a permanent magnet for increasing specific impulse, an anode plate, a high-voltage power supply, a main spark-gap capacitor, a diode, a lower insulating plate for fixing the propellant and a solid propellant; gas storage cavities for reducing the forward movement speed of neutral gas are respectively formed in the cathode plate and the anode plate; the distance between the cathode plate and the anode plate is increased on the rear sides of the gas storage cavities; tail ends, which are close to a nozzle, of the cathode plate and the anode plate are parallel to each other; the permanent magnet for increasing the impulse bit is added in the direction which is opposite to the direction of a self-inductance magnetic field; and the permanent magnet for increasing the specific impulse is added in the direction which is the same as the direction of the self-inductance magnetic field. The propellant utilization rate of the solid pulse plasma thruster can be increased. The solid pulse plasma thruster has the advantage of low cost, and is suitable for being used as a main thruster of a micro-nano satellite or an adjusting device of various large satellites.