An improved self-oscillating audio amplifier and a method for restraining audio distortion of the self-oscillating audio amplifier are disclosed. The improved self-oscillating audio amplifier comprises a distortion restraint unit configured to detect whether modulated audio signals outputted from the self-oscillating audio amplifier is distorted and, if so, to restrain the distortion. The method for restraining audio distortion of the self-oscillating audio amplifier includes the following steps of: determining whether the modulated audio signals outputted from an audio amplifier positive output terminal is distorted by a first flip-flop set, and if yes, restraining the distortion of the modulated audio signals outputted from the audio amplifier positive output terminal; and outputting the modulated audio signals to drive a speaker by the audio amplifier positive output terminal and an audio amplifier negative output terminal.