A processing method and system for identity authentication with a mobile terminal based on iris recognition is provided. The iris characteristic data of the user is encapsulated as iris identification data, which is further established as a unique identifier of the user for identity authentication. The mobile terminal compares the scanned iris characteristic data of the current user against the prestored iris identification data. When the iris characteristic data of the current user is in match with the prestored iris identification data, the mobile terminal is unlocked. Iris recognition is employed to verify the identity of the user, so as to control unlock the mobile terminal and log into the application.