Disclosed is a multi-stage plasma reactor system with hollow cathodes for cracking carbonaceous material with each stage comprising: hollow cathodes and hollow anodes cooled by recycling cooling medium or refrigerant; working gas inlet(s); inlet(s) of carbonaceous material and carrier gas as feedstock; reaction tubes in connection with the anode or cathode, in addition, the reactor system also comprises: at least one inlet(s) of quench medium located lower portion of last one of the reaction tubes; and at least one outlet(s) of quenched products and gases located on bottom or lower portion of last one of the reaction tubes, wherein chambers are formed between the first hollow cathode or the hollow cathode used as the reaction tube of any stage and the anode so as to generate plasma gas and/or electric arc therein, generated plasma gas jet fully contacts and efficiently mixes with the carbonaceous material and carrier gas as feedstock and/or volatiles caused by pyrolysis within or nearby highest temperature region of the chambers, and pyrolysis of the carbonaceous material and/or gas-phase reaction of volatiles are occurred. The present reactor system has excellent energy efficiency and higher cracked products yield.