The present disclosure discloses an atmospheric-pressure plasma equipment for fabric functional finishing and its application, and belongs to the field of textile printing and dyeing engineering. The atmospheric-pressure plasma equipment, including a discharging system, a grafting instrument and a cloth guider, can conduct continuous plasma treatment on fabrics under an atmospheric pressure, including plasma etching and plasma grafting, which breaks through the disadvantage of batch processing of vacuum plasma equipment. The equipment and method of the present disclosure realize functional finishing of the fabrics in the absence of water, and this finishing process is cost efficient, environmentally friendly, uniform, shorter treatment time and higher reactivity, and applicable to many materials and can keep the bulk properties of the treated substances.