The invention provides a coal mine power grid line impedance estimation system. The coal mine power grid line impedance estimation system comprises a signal collecting device, a looped network access device, a network topology generating device, a data validity verification device and an impedance estimation device, wherein the signal collecting device is used for synchronously collecting and processing voltage and current signals of a coal mine power grid explosive-proof switch which is connected with the signal collecting device, the looped network access device is used for connecting the signal collecting device with the data validity verification device through an optical fiber Ethernet loop network, the network topology generating device is used for generating network topology information, the data validity verification device is used for performing synchronism and reasonability processing on collected data, and the impedance estimation device is used for estimating verified data by combination with the network topology information so as to figure out impedance of each line of a coal mine power grid. The working method mainly includes system synchronization timing, signal collection, validity judgment, impedance estimation and the like. By means of the coal mine power grid line impedance estimation system and the working method thereof, the credibility of estimation results of line impedance of the coal mine power grid can be improved, and scientific and reasonable supporting data can be provided for setting calculation of short-circuit protection in coal mine relay protection.