The invention relates to a method for smelting molten steel and adding rear earths by a vacuum induction furnace, comprising the following steps: I, raw material preparation, weighed rear earth wiresare bent into an M shape and distributed on ingot moulds, and then the ingot moulds are arranged in a high-vacuum induction furnace; II, charging, pure iron, ferroalloy or returned scrap steels are charged into a crucible of the vacuum induction furnace, and ferrosilicon and metal manganese are put into a hopper; III, vacuum pumping by closing a furnace cover, vacuum pumping is carried out for 12min to 16 min, and furnace burden is heated by supplying power; IV, furnace burden melting; V, refining, solid raw materials which are charged into the furnace are all melted to form molten steel; VI,inflation, after the refining is finished, vacuum pumping is stopped, and argon gas is charged into a cavity of the vacuum furnace; VII, alloying, under the protective atmosphere of the argon gas, rear earth element composition is regulated; VIII, final deoxidation, Al pills are added to carry out deoxidation; and IX, steel tapping casting, steel liquid is poured into the ingot moulds which are wound by the rear earth wires. The method for smelting the molten steel and adding the rear earths by the vacuum induction furnace has high recovery rate of rear earth elements.