Based on interaction between laser and matter, the research on truing and dressing bronze-bonded diamond grinding wheel by acoustic-optic Q-switched YAG pulsed laser is carried out. Simulation models of single pulsed laser ablating bronze and diamond temperature field are established by finite element method, which shows the temperature distribution of bronze and diamond under different laser power densities. Reasonable laser parameters are obtained from the temperature distribution contours: the pulsed laser power density ranging of 1.66×107~7.5×107 W/cm2 is suitable for dressing; the value ranging of 9.95×107~3.52×108 W/cm2 is suitable for truing, which can be used as reference values for practical dressing and truing experiment. Typical parameters are applied to actual truing and dressing experiment, and the surface topography of the grinding wheel becomes favorable. Through simulation and experiment, the mechanism of pulsed laser truing and dressing bronze-bond and diamond grinding wheel is further analyzed.