The invention discloses a heavy oil hydrogenation microwave thermolysis reaction system and method. The system comprises an outer cylinder, an inner cylinder, a gas distributor and a microwave generator, wherein the outer cylinder comprises a lower cylinder, a cone and an upper cylinder that are connected in sequence from bottom to top, the inner cylinder is arranged inside the lower cylinder andthe top of the inner cylinder is inside the cone, the gas distributor is arranged inside the bottom of the inner cylinder, a material passing hole is arranged in the side surface of the bottom of theinner cylinder, and the lower cylinder is provided with an isolation structure. The method comprises the steps of introducing a certain amount of pre-heated heavy oil and catalyst into the inner cylinder, introducing hydrogen into the inner cylinder, so as to enable gas-liquid-solid to be fluidized in the inner cylinder rapidly and enable liquid-solid to circulate in an annular clearance formed bythe inner cylinder and the outer cylinder. Under the condition of introduction of hydrogen and microwave atmosphere, the heating mechanism of microwave, the micro mixing role of heavy oil and catalyst as well as the liquid-solid circulation mixing role of the inner cylinder are combined, so as to achieve higher heating, mass transfer and reaction efficiency.