The invention provides a bio-drying-based domestic refuse treatment method. The method comprises the following steps: (1), pre-treatment: feeding domestic refuses into a negative-pressure receiving room to break bags and manually select; performing innocent treatment on selected harmful refuses which have potential pollution threats to the soil and the underground water, and crushing selected large-size refuses in a large-size refuse crusher, wherein the crushed large-size refuses are treated in a step (3), residual domestic refuses are treated in a step (2), and the air change rate of the negative-pressure receiving room is five to seven times per hour; (2), bio-drying: feeding the residual domestic refuses treated in the step (1) into a bio-drying storehouse, stacking to form a refuse dump body, and covering the refuse dump body with a selective semi-permeable membrane; (3), post-treatment: sequentially performing mechanical crushing, drum screen screening, magnetic separation, near-infrared separation and air separation on the dried products obtained in the step (2) and large-sized refuses crushed in the step (1); (4), tail end treatment: respectively recovering and utilizing according to property difference of products selected according to the step (3).