In a device for indoor testing of pyrheliometers and an optical axis alignment method thereof, the indoor testing device mainly includes a concentrating system, a xenon lamp, a steering plane reflector I, an optical integrator, a collimating system, a laser, a collimating expander Beam system, steering plane mirror II and adjustment mechanism. When in use, first ensure that the optical axis of the indoor test device is aligned with the optical axis of the pyrheliometer to be tested; then move the laser and the collimator beam expander out of the device; finally light the xenon lamp, and the beams emitted by the xenon lamp pass through the focusing system, Steering plane mirror Ⅰ, optical integrator, collimation system and steering plane mirror Ⅱ, with a beam with irradiance better than 1353W / ㎡, uniformity better than 0.5%, collimation angle less than 1°, and beam aperture greater than 60mm Projected to the measured direct radiation, thereby realizing the indoor test work of the measured direct radiation.