The invention discloses a shield tunneling machine cutter state monitoring system and method. The system comprises a data acquisition module, a control and transmission module and a data processing module, wherein the data acquisition module comprises a temperature sensor, an abrasion loss sensor and a rotation speed sensor; the temperature sensor is used for acquiring temperature information of acutter of a shielding tunneling machine; the abrasion loss sensor is used for acquiring abrasion loss information of a hob on the cutter; the rotation speed sensor is used for acquiring rotation speed information of the hob; the control and transmission module is used for controlling each of the temperature information, the abrasion loss information and the rotation speed information, and respectively transmitting the information to the data processing module through a plurality of wireless links; the data processing module is used for analyzing an operation state of the cutter of the shieldtunneling machine according to preset geological information, received tunneling parameter information, the temperature information, the abrasion loss information and the rotation speed information; and the abrasion loss sensor and the rotation speed sensor are magnetic sensors. According to the system and method, accident risk of shield tunneling construction can be reduced and the comprehensivebenefit of shield tunneling construction can be improved.