The invention provides an automatic feeding system with an inlet at the top and an outlet at the bottom and a feeding method for extracting Chinese traditional medicine. The system comprises an entrance platform (III) and an exit platform (II) which can carry a feeding box (I); a feeding platform (IV), for feeding an extraction pot; the extraction pot (VII), located below the feeding platform (IV); a flexible feeding pipe (VI), wherein the top of the flexible feeding pipe is connected with the outlet (1) at the lower end of the feeding platform, and the lower end of the flexible feeding pipe stretches into the feeding port (2) at the top of the extraction port body (3); a transferring device (V) for connecting the entrance platform with the feeding platform and connecting the feeding platform with the exit platform, the bottom of the extraction pot is provided with downward open cover device (4), and the feeding platform is provided with a transition hopper. According to the automatic feeding system with the inlet at the top and the outlet at the bottom and the feeding method for extracting Chinese traditional medicine, the material feeding accuracy is improved, the operating time is saved, the manual intervention is reduced, the man-made pollution is avoided, the product quality is improved. And the system has the advantages of simple structure, safe and reliable operation, high automation degree, high transferring efficiency, low material breakage rate and easiness to clean material containing devices.