"The problems in the region will only be solved via direct dialogue between all concerned parties, without preconditions," Putin said.
"Threats, pressure and insulting and militant rhetoric are a dead end," a statement from his office said, adding that heaping additional pressure on North Korea in a bid to curb its nuclear programme was "wrong and futile."
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Early on Tuesday, the reclusive state fired an intermediate-range Hwasong-12 over Japan, prompting US President Donald Trump to insist that "all options" were on the table in an implied threat of pre-emptive military action.
The UN Security Council denounced North Korea's latest missile test, unanimously demanding that Pyongyang halt the programme.
US heavy bombers and stealth jet fighters took part in a joint live fire drill in South Korea on Thursday, intended as a show of force against the North, Seoul said.
Putin said he feared the peninsula was "on the verge of a major conflict" and called for all sides to sign up to a mediation programme drawn up by Moscow and Beijing.
He echoed comments by Foreign Minister Sergei Lavrov who in a Wednesday telephone call with US counterpart Rex Tillerson "underscored... The need to refrain from any military steps that could have unpredictable consequences."
The Russia-China plan involves a mutual pause in missile tests by North Korea and joint South Korean-US military exercises by Seoul.
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