A source driver adapted to drive a display panel and a driving method thereof are provided herein. The source driver includes an output buffer and a first pre-charge circuit. The output buffer has a first input terminal receiving a pixel signal and has both of a second input terminal and an output terminal coupled to the display panel. The first pre-charge circuit charges the output terminal of the output buffer to a preset voltage associated with the pixel signal for a pre-charge period. The output buffer is inactivated during the pre-charge period and is activated for a preset period after the pre-charge period. Therefore, power consumption of the source driver can be reduced.