The invention relates to a digital multipoint distribution system and a transmission processing method thereof. According to the digital multipoint distribution system, a near-end access unit is composed of a power module, a monitor panel, a frequency conversion module, a medium frequency processing portion and a modem; a system expansion unit is composed of a power supply, a monitor panel, an interface conversion portion and a medium frequency processing portion; a system far-end unit is composed of a medium frequency portion, a frequency conversion module and a radio frequency amplifying portion. The transmission processing method of the digital multipoint distribution system is composed of the steps including system near-end unit transmission, system expansion unit transmission and system far-end transmission. The digital multipoint distribution system and the transmission processing method thereof solve the problems of incapability of achieving multiple-network common access, multiple-network coexisting interference, poor indoor telephone traffic absorption capacities and the like and has the advantages of multiple-network co-construction, resource sharing and construction investment sharing, low noise introduction, better signal coverage quality, convenient design, simple construction, energy conservation, emission reduction, operating cost reduction and the like.