The invention relates to a moving target detection system based on laser radar and a moving target detection method thereof. The system is composed of an acquisition unit, a processing unit and a network unit. The method comprises the operation steps of acquisition of range finding data frames, acquisition of attitude data frames, clustering of data points, extraction of the clustered feature points, matching of the previous frame of feature points, calculation of movement information, correction of the movement information and outputting of the detection result. The system and the method are great in real-time performance, high in accuracy, high in expandability and suitable for the application requiring autonomous positioning and detection of a moving target in the dynamic environment, such as an autonomous navigation robot, an unmanned vehicle and automatic warehousing.