Disclosed are a canister type thruster for implementing smooth upward/downward movement and improving productivity and an installation method thereof. The canister type thruster includes a guide module for guiding upward/downward movement of a canister. The guide module includes: a guide unit that is installed on an inner surface of a trunk so as to support a rack installed on an outer surface of the canister in parallel with a lifting direction to guide the upward/downward movement of the canister, a sliding pad that relieves an impact or a friction applied to the guide unit; and a support protrusion that is provided between the guide unit and the sliding pad to support the sliding pad.