The invention discloses a DLP (digital light projector) micro projector and a projection method thereof. A light source of a light supply device of the projector is formed by LED (light emitting diode) chips with three types of colored light which are linearly arranged on the same plane, a collimating lens group is arranged, and the central optical axis of the collimating lens group is coincident with the central optical axis of the LED chip in the middle; and then two beam-splitting lenses for reflecting different colored light and a reflection lens are sequentially arranged along the optical path of the collimating lens group, the three types of colored light emitted by the light source can be emitted into a subsequent optical component in parallel. According to the DLP micro projector and the projection method thereof, the size of the projector can be reduced, and the problem of reduced light transmission efficiency possibly caused by the reduced size of the projector is solved.