The invention provides a phone mutual dialing busy line processing method and system, and relates to the technical field of communication. The method comprises the steps of: receiving a call request sent by a call terminal, and according to the call request, judging whether a called terminal is engaged; if the called terminal is engaged, judging whether the call terminal and the called terminal are mutually dialed; and if the call terminal and the called terminal are mutually dialed, interrupting or continuing calling of the call terminal according to sequences that the call terminal and the called terminal initiate the call request. According to the phone mutual dialing busy line processing method and system provided by the invention, under the phone mutual dialing busy line condition, a user can normally answer the phone, so that experience of the user is improved.