The invention relates to an automatic identification system for train position type based on an RFID technology and application thereof. The system comprises an RFID receiving antenna, ground electronic tags, a system host and an independent display terminal, wherein the ground electronic tags are laid on rails in the vicinity of a main track turnout for identification of train position type; theground electronic tags are divided into seven kinds ranged from A-G according to deploying position type, the tags comprise an A type tag arranged on a straight rail of an up main track and close to astock rail of the turnout, a D type tag arranged on a straight rail of a down main track and close to the stock rail of the turnout, a B type tag arranged on a rail where an up turnout is located andclose to a frog center, an E type tag arranged on a rail where a down turnout is located and close to the frog center, a C type tag arranged on the rail where the up turnout is located and located ata corresponding position of a fouling post, an F type tag arranged on the rail where the down turnout is located and located at the corresponding position of the fouling post, and a G type tag arranged on an entrance and exit line and close to the position of the main track. The system can identify the position type in which a train is currently located well.