He also warned against "military hysteria" and took aim at US President Donald Trump's threats of annihilation.
The rogue state is facing international outrage after its latest nuclear bomb test on Sunday.
Britain, the US and Japan want further sanctions, including on supplying oil.
But speaking at a summit in China, Mr Putin said that "resorting to just any sanctions in this situation is useless".
He added: "They'll eat grass but they won't abandon their nuclear programme unless they feel secure."
Earlier, Putin warned of a global "catastrophe" saying sanctions would be "useless and ineffective".
The Russian President condemned North Korea's latest nuclear test as "provocative" but said tougher sanctions on Kim Jong-un over its nuclear missile programme could lead to large-scale human suffering.
Speaking after the meeting with South Korean President Moon Jae-in, he called for talks with North Korea, saying sanctions are not a solution to the country's nuclear and missile development.
Moon had urged Moscow to support stronger sanctions against North Korea, but Putin stood firm.
"We should not give in to emotions and push Pyongyang into a corner," Putin told a news conference after the meeting.
"As never before everyone should show restraint and refrain from steps leading to escalation and tensions."
Moon said the leaders agreed that reducing regional tension and "quickly solving" the security challenges posed by North Korea's nuclear and missile programme were critical.
Putin's comments came after the US called for the "strongest possible measures" against North Korea for detonating what it called a hydrogen bomb on Sunday.
Meanwhile, Japan is planning for a possible mass evacuation of the nearly 60,000 Japanese citizens currently living in or visiting South Korea in the wake of North Korea’s latest nuclear weapons test.
It comes as North Korea reportedly moved an intercontinental ballistic missile towards its west coast - as the US declared Kim Jong-Un is “begging for war”.
South Korea’s Asia Business Daily cited an intelligence source saying the rocket was spotted moving on Monday - just a day after North Korea’s sixth and largest nuclear test.
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