An on-line uninterruptible power system and an operation method thereof are provided. The on-line uninterruptible power system comprises a first switch unit, a second switch unit, a charging circuit, a DC-AC conversion circuit, a power factor correction circuit and a control circuit. When the on-line uninterruptible power system is in a line mode, the control circuit controls the operation of the power factor correction circuit to limit the magnitude of its input current to not exceed a first predetermined value.