The invention belongs to the technical field of coal pyrolysis, and particularly relates to a regenerative pyrolytic reaction system and method for powdered coal. The method and system are used for extracting resources, such as oil, gas and carbon, in low-rank coal. The system comprises a hopper, a pneumatic feeding system, a regenerative pyrolytic reactor, a cold slag machine, a condensation blower system and a purification system. The pneumatic feeding system is connected with the hopper which is connected with a feeding inlet; the regenerative pyrolytic reactor comprises a pyrolysis chamber, a double-regenerative radiant tube system, the feeding inlet, a discharging outlet and a pyrolysis gas export; the condensation blower system is arranged between the regenerative pyrolytic reactor and the purification system, the inlet of the condensation blower system is connected with the pyrolysis gas export formed in the side portion of the lower side of the condensation blower system. The reaction system is provided with multiple layers of radiant tubes, temperature is convenient to adjust, convenience is brought to the achievement of a pyrolyzed target product, the pyrolytic technology is simple, and the system is high in reliability.