A current-shunting AC LED driving circuit has a rectification unit, an LED unit, a voltage-controlled transistor, a shunt resistor, a current detection unit and a steady current control unit. The LED unit and the rectification unit constitute a power loop and acquire a pulsed DC power through the rectification unit. The voltage-controlled transistor and the current detection unit are serially connected to the power loop. The steady current control unit acquires an average loop current through the current detection unit to control the voltage-controlled transistor so that the LED unit can stably emit light. The shunt resistor is parallelly connected to the voltage-controlled transistor to constitute a current-shunting path to shunt the loop current flowing through the voltage-controlled transistor so as to reduce the power withstood by the voltage-controlled transistor.