The invention relates to a processing method of recycled illegal cooking oil, which comprises the following steps of: firstly, filtering impurities of collected illegal cooking oil, swilling oil and waste oil and depickling the collected illegal cooking oil, swilling oil and waste oil, then placing the collected illegal cooking oil, swilling oil and waste oil in an agitated reactor, adding 3-6% of carclazyte and 0.5-1.5% of phosphoric acid, mixing, heating and uniformly stirring, heating the uniformly stirred materials, naturally cooling to 34 DEG C-37 DEG C after settling and decomposing, filtering to obtain liquid oil and semi-solid carclazyte after settling and splitting phase, wherein the acid value of oil of the illegal cooking oil, swilling oil and waste oil is reduced from 3.5mg/koh/g to 0.9-1.4mg/koh/g, drying or naturally drying the semi-solid carclazyte in air, then placing the liquid oil and the semi-solid carclazyte in the agitated reactor, adding 3% of cation expression activity emulsifying agent, stirring at high speed for 20-50 minutes at the temperature of 50 DEG C-80 DEG C to enable fatty acid and triglyceride to be micro-emulsified, then adding 0.1% of ionic catalysis stabilizing agent, under the condition of 100-150Mpa pressure, and finally pumping hydrogen for 15-25 minutes by 0.5 per cubic meter per second to obtain biomass fuel. The processing method has the advantages of simple process, low cost, little energy consumption and high efficiency.