The hypoxic environment at high altitudes causes various sleep disorders. Diffuse oxygen enrichment is an effective way to alleviate sleep disorders and improve the built environment in high altitude areas. In this study, a novel point source local diffuse oxygen supply method was proposed to improve the sleeping oxygen environment. The oxygen supply performance was investigated by the computational fluid dynamics (CFD) method including the oxygen concentration and air velocity distributions. A sleeping experiment was conducted on the plateau to validate the CFD model. The occupied zone including the inhalation zone and the active zone was defined. The results showed that the oxygen concentration showed a rapid rise, then decreased slowly, and finally tended to be stable. The oxygen concentration after stabilization was remarkably influenced by indoor ventilation rate. The sleeping environment’s improvement was examined considering the oxygen enrichment efficiency, uniformity, stability and human comfort demand. The optimal strategies were recommended with a ventilation rate of 1 air change per hour, supplied oxygen concentration of 90%, and jet distance of 0.50 m. The study contributes to improving the oxygen environment and human sleep quality in an effective and energy-saving approach to the sustainable development of buildings in high altitude areas.