The invention relates to an urban parking induction system and method based on the Internet of Things technology. The system comprises four modules including an information acquisition module, an information transmission module, an information analysis and processing module, and an information management and publishing module. The method includes: 1) standardizing a decision matrix X as a matrix Yshown in the description; 2) calculating a combined weight Wi; 3) establishing a gray correlation coefficient matrix between a0 and ai; and 4) determining an optimal scheme. The beneficial effects ofthe system and the method are that users still receive parking spaces recommended by the system in a passive manner for parking space induction in a parking lot, and with the progress of science andtechnology, the driving users can actively and autonomously select satisfying parking spaces and paths for driving, which is a goal of parking guidance in the parking lot in the future.