The invention discloses a method and a system for processing copper-containing iron powder. The method for processing the copper-containing iron powder comprises the following steps: ensuring the copper-containing iron powder and carbon monoxide to generate reaction in a gasification synthesis reaction device so as to obtain gaseous carbonyl iron and cuprous sulfide containing solid slag; carrying out decompression cooling on the gasification synthesis reaction device to ensure the gaseous carbonyl iron to convert to liquid carbonyl iron so as to obtain a solid-liquid mixture; carrying out solid-liquid separation on the solid-liquid mixture so as to obtain the liquid carbonyl iron and solid tailings respectively; gasifying and decomposing the liquid carbonyl iron in a pyrolyzing furnace so as to obtain metal iron powder; and carrying out fine grinding and floatation treatment on the solid tailings so as to obtain copper concentrates and tailings. Therefore, with the adoption of the method, copper and iron are effectively separated when sulfur elements in a raw materials are fully utilized, and thus an iron product with high purity and high additional value and the copper concentrates with the copper content to be above 30 percent are obtained, the applicability is good, and the economic benefit is dramatic.