The invention discloses a short message encryption method and a terminal equipment used thereof. The method comprises the following steps: mutually negotiating a digital key between a transmission terminal equipment and a receiving terminal equipment according to respective key-cipher table, wherein a pseudo short message table is stored in the terminal equipment and the receiving terminal equipment; respectively encrypting the text content of a short message by using a symmetrical encryption technique during transmission of the short message, and deciphering the text content of the short message by using the symmetrical encryption technique after the short message is received; then forging the encrypted short message to a normal short message by the pseudo short message table. The symmetrical encryption technique adopts the mode of: selecting one pseudo short message in the pseudo short table, then encrypting the digital key according to the key-cipher table and the pseudo short message table, obtaining the encrypted key, then encrypting the really-transmitted short message by using the encrypted key. A common short message can be encrypted through a smart method without spending more cost, thereby well protecting the privacy information of mobile phone users.