The invention discloses a system and method for treating rural domestic garbage. The system comprises a treatment unit and a moving bed pyrolyzing furnace, wherein a pretreatment unit comprises a rural domestic garbage inlet and a domestic garbage particle outlet; the moving bed pyrolyzing furnace is provided with a rotatable furnace bottom; sieve holes are formed in the furnace bottom; the inside of the moving pyrolyzing furnace is divided into an upper space and a lower space by the furnace bottom; a heat storage type fuel gas radiation pipe combustion device is respectively arranged in each of the upper space and the lower space; in the rotating direction of the furnace bottom, a screening region, a drying region, a pyrolyzing region and a discharging region are sequentially defined in the upper space; a domestic garbage particle inlet is formed in the screening region; a high-temperature oil gas outlet is formed in the pyrolyzing region; a pyrolyzing carbon outlet is formed in the discharging region; an inorganic garbage outlet is formed in the lower space. By using the system, the pre-treatment work procedure in the prior art can be avoided; in addition, the obtained pyrolyzing carbon has low ash content, so that the calorific value of the pyrolyzing carbon is higher and can be used for nearby villagers; the in-situ quantity reduction and resourcing utilization of the rural domestic garbage can be further realized.