The invention provides a GPS and radio analog signal source system and a processing method and relates to the technical field of navigation. The system is characterized by comprising a control terminal, a radio signal source end and a GPS signal source end, wherein the control terminal is respectively connected to the radio signal source end and the GPS signal source end through signals; the control terminal comprises a control unit and a data transmission unit; the radio signal source end comprises a control command transmission unit, a modulation signal input unit, a radio AD conversion unit, a radio processing unit, a radio filtration and attenuation unit and a radio frequency output unit; and the GPS signal source end comprises a GPS processing unit, a GPS end AD conversion unit, a frequency mixing unit, a frequency synthesis unit and a GPS filtration and attenuation unit. The system and the method have the advantages of flexibility, universality, low cost and the like.