The invention relates to a heat carrier destructive distillation system for coal, which comprises a raw coal cabin, a flash dryer, and a circulating fluidized bed air heating furnace, wherein a spiral metering conveyor I is arranged at the bottom of the raw coal cabin; a flash dryer is connected with a drying primary separator and an air heating furnace twice cyclone separator; the drying primary separator is connected with a drying secondary separator and a mixer; the air heating furnace twice cyclone separator is connected with a cooling paddle machine and a waste heat boiler; the waste heat boiler is connected with an air heating furnace once cyclone separator connected with the mixer and the circulating fluidized bed air heating furnace; the mixer is connected with an internal thermal rotary gas retort; a separator is connected with a cooling tower and a fluidized bed grading cooler; the cooling tower is connected with a coal gas air blower and a tar oil cooler; the fluidized bed grading cooler is connected with a semi-coke delivery pipe, the drying secondary separator and a grading cyclone separator; the circulating fluidized bed air heating furnace is connected with the grading cyclone separator. In addition, the invention further discloses an application method of the system. The heat carrier destructive distillation system is low in investment and easy to implement, and has high overall efficiency and excellent safety.