The invention discloses a vehicle real-time route optimization method and a vehicle-mounted terminal. The method comprises the following steps: a) the vehicle-mounted terminal receives a GPS signal through a GPS positioning unit to obtain the state information of the vehicle; b) a control center receives a GPS signal to obtain the traffic state information of a special region; c) the control center transmits the traffic state information of the surrounding region of the vehicle-mounted terminal to the vehicle-mounted terminal through a wireless communication network according to a request of the vehicle-mounted terminal; d) the vehicle-mounted terminal calculates the driving data of all routes on an electronic map according to the received traffic state information; and e) the vehicle-mounted terminal outputs an optimal navigation paths according to the driving data of all routes and the set navigation rules. The vehicle-mounted terminal of the invention can receive the traffic state information data sent by the GPS satellite signal and control center to adjust and output the optimal drive circuit, thus facilitating the drive of the driver and decrease the congestion of road traffic.