The invention relates to the field of chemical metallurgy, in particular to a system for utilizing nickel laterite ore for pyrolysis and reduction reactions. A recycling type pyrolysis and reduction reaction system and method for efficiently recycling nickel laterite ore dry pellets in a smoke waste heat furnace body are provided for overcoming defects in the prior art so as to achieve pyrolysis of coal and reduction smelting of nickel laterite ore in the coal-based direct reduction process of the nickel laterite ore, so that grained iron is produced. In the system, semicoke obtained after pyrolysis participates in the direct reduction reaction of the nickel laterite ore in a rotary hearth furnace to obtain the metalized pellets. According to the system, coal pyrolysis can be achieved in the direct reduction process of the nickel laterite ore, oil and gas resources can be recycled, byproducts of a rotary hearth furnace coal-based direct reduction technology are increased, smoke waste heat generated in the furnace body is effectively reutilized, environment friendliness is achieved, and technology energy consumption and cost are indirectly reduced. In addition, the metalized pellets are subjected to two times of recycling, the recycling rate of the nickel laterite ore is increased to some degree, and therefore the nickel laterite ore is efficiently recycled.