The invention provides a banknote 
plastic packaging machine and a banknote packaging method. The banknote 
plastic packaging machine comprises a frame, an upper 
plastic film frame, a lower 
plastic film frame, a lifting mechanism, a driving 
system and a 
control system, wherein the frame is divided into a plurality of 
layers of mounting areas from top to bottom by a plurality of baffle plates; a primary plastic 
package unit is arranged in the mounting area between the upper 
plastic film frame and the lower plastic 
film frame and used for conducting primary plastic 
package on plastic packaged banknotes by a plastic film, and the secondary plastic 
package unit is parallel to the primary plastic package unit and is used for conducting the secondary plastic package on the plastic packaged banknotes by heat shrinkage films; the lifting mechanism is arranged in front of an L-shaped banknote pushing mechanism and used for conveying the plastic packaged banknotes subjected to secondary plastic package to a heat shrinkage furnace, and the heat shrinkage furnace is arranged below the lifting mechanism and used for conducting heat shrinkage treatment on the plastic packaged banknotes subjected to secondary sealing and 
cutting. According to the banknote 
plastic packaging machine, the banknote damaging rate is reduced, the banknote drawing can be avoided, the banknote storage quality is improved, the environment of the banknote storage warehouse is improved, the 
logistics management of the banknotes is facilitated, the volume of the machine is small, and the degree of 
automation is high.