The invention provides a squid identifying and sorting method which comprises the following steps of firstly, extracting a squid area from an image containing squids, then judging the orientation andintegrity of the squids through the area characteristics, extracting the necks of the complete squids through a morphological algorithm, calculating the body length, and dividing the squids into a plurality of grades according to the body length; for the incomplete squids, marking the squids directly as the lowest level; and according to the grading condition, controlling the external selection equipment to distribute the squids, thereby finishing classification. According to the method, the squids can be automatically identified and graded, the grabbing and distribution are controlled, the manual operation is not needed during the whole process, the intelligent degree is high, the manpower is greatly saved, the identification accuracy is high, and the classification result is reliable. The method can accurately and effectively sort the different types of squids and the aquatic products, such as cuttlefishes, octopuses, etc., which have the similar shapes with the squids.