The invention discloses a model driving based city track traffic running simulation method and system. According to the scheme, locomotive vehicle factors are input as external conditions and other influence factors are considered according to a disadvantage principle of a signal system, so that the effect of lowering the complexity of simulation is achieved; secondly, the effect of a vehicle control model of the signal system in train running simulation is highlighted, the combination of an ATP overspeed protection model and an ATO speed control model is considered, and the vehicle control effect of the signal system is highly fitted, so that a simulation result can meet an actual condition as far as possible and the goal of ensuring the precision of simulation can be achieved; and finally, a simulation platform generates related parameters of a tracking interval, a turn-back interval, blocking design, system parameter calculation and the like related to signal system project design in the same simulation platform by taking the train running simulation under the control of the signal system as a core, and has the functions of calculating and analyzing operation-related running time and travel speed index, thereby ensuring data consistency and realizing high functional integration.