The invention discloses a garbage and sludge high pressure themolysis processing method, system and application thereof. The invention carries out themolysis reaction for 5min-1.5h under the conditions of 8-80atm and 150-320 DEG C and three times of dehydration drying, not only heat value of garbage and sludge is greatly improved, dehydration, benzene removing, dechloridation, deodorization, disinfection, sterilization, volume reduction, bag breaking and degradation decomposition are carried out on garbage and/or sludge and percolation liquid is treated, and clean energy and recycled self-circulation heat are taken as heat supply energy source, energy consumption is reduced; but also method in material is rejected, so as to reduce the production probability of dioxin in garbage incineration smoke. The invention realizes garbage and sludge comprehensive reclamation, including power supply, heat supply, production of multiple organic compound fertilizers and environmentally friendly building materials and direct recovery of metal, battery and plastic. The invention can realize preparation of garbage and sludge organic compound fertilizer and feed, pre-treatment of garbage incineration generating and pre-treatment of garbage themolysis generating and has the characteristics of environmental protection, energy conservation and wide application range.