The invention relates to a centralized heating system with an industrial waste heat integrated utilization function and a using method thereof. The centralized heating system comprises an industrial waste heat collecting subsystem, a heat transport network and a tail end heat utilization subsystem. The industrial waste heat collecting subsystem comprises a circulating water waste heat collecting device, a low-temperature waste heat material heat exchanger and an in-plant electric heating pump. The heat transport network comprises a primary network water supply pipeline, a primary network water return pipeline, a secondary network water supply pipeline, a secondary network water return pipeline, a circulating water supply pipeline, a circulating water return pipeline and a low-temperature waste heat material pipeline. The tail end heat utilization subsystem comprises a heating network water heat extracting device and a tail end electric heating pump. According to the centralized heating system and the using method thereof, by arranging the combination of the circulating water heat exchanger, the low-temperature waste heat material heat exchanger and the heating pumps on the in-plant heat source side, circulating water waste heat, technological material waste heat and the like can be recycled at a time according to the temperature grade, waste heat which cannot be recycled through direct heat exchange is recycled through the heating pumps, and gradient utilization of the industrial waste heat and optimized utilization of in-plant waste heat resources are achieved.