The invention relates to an ash settling, denitrifying and cooling all-in-one machine for flue gas of a straw combustion boiler and an implementation method. Hot flue gas generated during combustion of straw fuels enters an ash settling chamber, so that one part of flying ash freely settles relying on gravity, and the other part of ash particles hit against a smoke separating wall I opposite to a flue gas inlet to settle to a plurality of ash settling funnels II; the settling hot flue gas sequentially passes through an intake channel I, a first convection bank, an inlet and outlet channel I, a second convection bank, an inlet and outlet channel II, a third convection bank and an outlet channel II to enable the hot flue gas to stall once more, and to settle to a plurality of ash settling funnels I; the settling hot flue gas directly enters a low-temperature denitrifying device; and after the nitrogen in the flue gas is removed, the processed flue gas enters a heat energy exchanging device, and after being cooled, the entered flue gas enters following equipment. The ash settling, denitrifying and cooling all-in-one machine disclosed by the invention has the effect that the heat exchange of a straw boiler is greatly improved; the abrasion of a pipeline of the straw boiler is reduced, so that during the process of heat exchange of the pipeline, the flue gas freely moves; and the atmospheric emission and the energy resource consumption are reduced, and besides, the material cost, the manufacturing cost, the mounting cost and the occupied space cost can be reduced.