In order to study the influences of the initial liquid level on lube characteristics and oil-churning resistance moment of gear reducer, the heat generating power of one special kind of planet gear reducer under the special working condition is calculated. The fluid temperature at different initial liquid levels is calculated by FEA method. According to the relation between the physical parameters of the lube and the fluid temperature, the corresponding relation between the physical parameters of the lube and the initial liquid level is deduced. Based on the FEA results, the physical parameters of the lube are set to conduct the co-simulation of the oil-churning process of the planetary reducer under different initial liquid levels by MPS method. Depend on the simulation results, the influence of initial liquid level on lubricating flow state and oil-churning resistance moment of planetary reducer is analysed, and the initial liquid level is sifted. These studies provide methods and reference for lubrication medium set in transmission boxes, such as planet gear reducer and so on.