The present invention relates to an interactive LED display device which comprises a control terminal, a plurality of unit information acquisition systems, a plurality of LED modules, a plurality of interactive sensors and interactive effective induction systems. The control terminal is connected to the plurality of unit information acquisition systems. Each unit information acquisition system is connected to the plurality of LED modules. Each LED module is connected to the plurality of interactive effective induction systems. Each effective induction system is connected to one or more interactive sensors. The present invention also relates to a display method of an interactive LED display device. The LED display device and the display method have a preferred adaptability to serious circumstance, an enhanced stability of interactive display and bring out strengthened interactive display effect.