The invention discloses a multifunctional telephone conference system and method, and a plurality of branches, each branch comprises a telephone terminal, a telephone network and an audio coupler which are connected in sequence, and the audio coupler of each branch is connected to a sound console; the sound console controls input and output audio signals through the switch matrix, dynamically adjusts the volume, and sets an input and output audio route, so that each path of input is isolated from the corresponding path of output route, echo caused by sound return is avoided, and connectivity between a certain path of input and other paths of output is controlled through switches.