The invention relates to a power grid fault simulation deduction system and method, and belongs to the technical field of power grid fault simulation. The system comprises a data acquisition module, apower grid topology model establishment module, a historical data storage module, a simulation rule storage module, a power grid operation rule parameter adjustment module, a simulation module, a simulation result analysis module, an alarm module and a short message sending device. According to the system, a power grid topology model is established, real-time data of primary and secondary equipment is collected to provide guidance for power grid fault consequence simulation deduction, online early warning, rapid fault diagnosis and accurate processing work. Test operator behaviors are standardized, safe and reliable operation of a power grid is ensured, availability and reliability of related equipment are improved, equipment fault consequences are controlled, and safety accidents causedby too long power grid fault duration time or fault processing activity errors are avoided.