The invention discloses a Chinese black olive dwarf compact planting and cultivation method. A branch which is strong and free of diseases and pests is selected from a Chinese black olive seed tree of good quality; girdling treatment is carried out on the portion, 15-20 cm away from a branch body, of the branch, a girdling treatment cut is coated with a chemical compound promoting rooting by a circle, then a wet substrate is bound to the girdling treatment portion, the wet substrate is tightly wrapped by a film, and the two ends of the wet substrate are tied through a rope; a dilute ethephon solution is added into a film bag 40-50 days later after branching-after-topping treatment; after a root grows from the girdling treatment cut and the new root of a branching-after-topping seedling turns yellow brown, the branching-after-topping seedling can be cut off for temporary planting and transplanting; after temporary planting and transplanting are carried out for 2-3 months, field cultivation and planting can be carried out, and conventional fertilizer and water management is carried out; meanwhile, shaping and trimming are carried out. The method overcomes the defects that the vegetative period of Chinese black olives is long and the per unit area yield is low, and is easy to operate, low in cost, early in fruiting and high in efficiency.