The invention relates to a lignite drying and upgrading system, which includes four silos with heat exchange function and a heat exchange device that can provide heat exchange medium to the four silos for heat exchange; the four silos have medium inlets and Medium outlet, the medium inlet and medium outlet of the four silos are respectively connected to the medium flow switching control pipeline, and the flow of the heat exchange medium in the four silos can be changed by opening or closing the corresponding switching valve on the medium flow switching control pipeline. flow direction, so that the four silos can be switched among the four silo functions of preheating silo, drying silo, upgrading silo, and unloading silo to perform one of the silo functions respectively, and the heat exchange medium is After the compartment is isolated, it flows in the order of upgrading compartment-drying compartment-preheating compartment and returns to the heat exchange device. The invention has the advantages of simple manufacture, low requirements, easy control of the drying and upgrading process, energy circulation, greatly reduced energy consumption, and a sealed structure to ensure safe operation during the drying process, which is beneficial to environmental protection.