The invention provides an automatic transmission, a limp control method for handle position faults of the automatic transmission and an automatic transmission controller. The limp control method comprises the following steps that a first threshold value and a second threshold value of a vehicle speed are set, and then an actual vehicle speed is compared with the first threshold value and/or the second threshold value, each comparison result is used for setting the corresponding working state controlling a corresponding electromagnetic valve. According to the automatic transmission, the limp control method for the handle position faults of the automatic transmission and the automatic transmission controller, when the vehicle runs at a low speed, intension of a driver is taken as the priority, the vehicle still has the functions of forward running and the backward running is guaranteed, and the formation of an actual gear is determined by an actual handle position; and when the vehicle runs at a high speed, the vehicle still has a high speed D-R protection function by taking safety considerations as the priority, and formation of an actual gear are determined by double factors of theactual handle position and the vehicle speed.