The invention discloses a combined heat and power generation heating system based on absorption heat pump circulation and a working method; all heat exchangers needed by the heat pump circulation adopt an independent design, so that the arrangement is convenient, the manufacturing cost is reduced, and the system heating capacity is greatly improved; related equipment and technologies are mature; the reliability is higher; and the maintenance is convenient. A classical heat pump thermal circulation system is improved; an evaporator is canceled; and functions of a heat pump condenser are realized by using an original heating network heater of a power plant, so that the manufacturing cost can be further reduced, and the system reliability is improved.