The present invention discloses a lossless snubber circuit and an operation method thereof. The lossless snubber circuit includes a first snubber circuit. The first snubber circuit includes a first diode (D7) and a capacitor (C3). The capacitance of the capacitor (C3) is big enough so that a voltage spike generated at the moment when a switch transistor (Q1) is turned off is depressed by charging the capacitor (C3). When the switch transistor (Q1) is on, the electric charges released by the capacitor (C3) are directed to a first capacitor (C1) in a three-phase Vienna structure, so as to avoid the problem of voltage stress difference caused by the large quantity of electric charges released by the capacitor (C3) flowing back to the switch transistor (Q1).