The invention provides an urban railway traffic traction power supply ring current handling method and system. The method is applied to an urban railway traffic traction power supply system. The urbanrailway traffic traction power supply system comprises a plurality of traction substations, and each traction substation comprises a diode rectifier unit and an energy feedback device. The method comprises the steps of determining the target duration time, wherein the target duration time is the time lasting during in-station ring current or inter-station ring current generated in the diode rectifier units and the energy feedback devices; judging whether the target duration time is longer than the bake time; if yes, increasing the inversion starting voltage of the energy feedback device to the preset voltage so as to eliminate inter-station ring current or in-station ring current generated by the urban railway traffic traction power supply system. The inter-station ring current or in-station ring current can be monitored and eliminated in real time, ring current losses are avoided, and it is ensured that the system is operated normally.