The invention provides a suspension type steel rail flash butt welding and heat treatment machine and a suspension type steel rail flash butt welding and heat treatment method. The suspension type steel rail flash butt welding and heat treatment machine comprises two clamps, a clamping driving device, a protrusion pushing device, a heater and a control device. The two clamps stretch across the positions, close to fracture surfaces to be welded, of two steel rails to be welded respectively in the width direction of the steel rails and are connected through an upsetting shaft, and the two clamps are kept being insulated from each other. The clamping driving device is connected with the movable clamp and the fixed clamp. The protrusion pushing device is arranged in the length direction of the steel rails, and a protrusion pushing knife of the protrusion pushing device is arranged between the movable clamp and the fixed clamp. The heater is arranged between the movable clamp and the fixed clamp and connected with the protrusion pushing device. The suspension type steel rail flash butt welding and heat treatment machine integrates a flash butt welding device and a heat treatment device, and the occupied space of equipment is reduced; meanwhile, the time for welding the steel rails is shortened.