The invention provides a detection and recovery circuit for the exceptions of a USB (Universal Serial Bus) device, and a method thereof. The detection and recovery circuit comprises a phase locked loop unit, a data receiving/transmitting unit, a flag data detection unit and a flag watchdog unit, wherein the phase locked loop unit is used for generating a clock signal; the data receiving/transmitting unit is coupled with the phase locked loop unit and used for receiving a channel signal and sampling the channel signal according to a clock signal so as to generate bus data; the flag data detection unit is coupled to the data receiving/transmitting unit and used for detecting flag data on the bus data to generate a control signal; and the flag watchdog unit is coupled to the flag data detection unit and used for generating a reset signal to the phase locked loop unit, the data receiving/transmitting unit and a micro-control unit when the control signal indicates that the flag data detection unit detects no flag data and after a preset period of time.