The present invention provides a capsule endoscope and a control method thereof. The capsule endoscope includes an enclosure, a photographing device and a light source device housed in the enclosure. The light source device illuminates inner surface of digestive tract with illumination light, and the photographing device captures images of the digestive tract based on the illumination light. The enclosure comprises a main enclosure and an optical dome enclosed at one end of the main enclosure. The optical dome is disposed at the front end of the light source device. The light source device comprises a first light source module and a second light source module. The wavelength ranges of lights emitted from the first light source module and the second light source module are different, and the first light source module and the second light source module are arranged with a space around the photographing device.