A management method of local area network (LAN) and a device thereof adapted to a network terminal are provided. The management method of LAN detects whether a network interface provides a dynamic host configuration protocol (DHCP). A static address is provided for the network terminal when the network interface does not provide the DHCP. Thereby, an interaction between the network terminal and other terminals in the LAN can be performed via the static address. In addition, the static address of the network terminal is canceled when the network interface provides the DHCP, so that the network terminal can operate in the LAN by following the DHCP.