A method and an equipment for processing NdFeB rare earth permanent magnetic alloy with a hydrogen pulverization are provided. The method includes steps of: providing a continuous hydrogen pulverization equipment; while driving by a transmission device, passing a charging box loaded with rare earth permanent magnetic alloy flakes orderly through a hydrogen absorption chamber, having a temperature of 50-350° C. for absorbing hydrogen, a heating and dehydrogenating chamber, having a temperature of 600-900° C. for dehydrogenating, and a cooling chamber of the continuous hydrogen pulverization equipment; receiving the charging box by a discharging chamber through a discharging valve; pouring out the alloy flakes after the hydrogen pulverization into a storage tank at a lower part of the discharging chamber; sealing up the storage tank under a protection of nitrogen; and, moving the charging box out through a discharging door of the discharging chamber and re-loading, for repeating the previous steps.