The invention discloses a northern residential district sewage processing system and method. The system comprises a grating tank, an adjusting tank, a magnetic separation water purification unit and a constructed wetland unit. The grating tank, the adjusting tank, the magnetic separation water purification unit and the constructed wetland unit are connected in order through water pipes. According to water quality characteristics of northern residential district sewage, the sewage processing system combined with a magnetic separation water purification technology and a modularized constructed wetland technology is provided, processing advantages of the magnetic separation water purification technology and the modularized constructed wetland technology to pollutants are utilized fully, processing quota of the two novel technologies are distributed reasonably, removal of suspended organic matters, suspensions and total phosphor in sewage is mainly finished during the magnetic separation water purification technology process, and removal of the total nitrogen, ammonia nitrogen and dissolved organic matters is finished by the modularized constructed wetland. The problems are solved that a constructed wetland technology unit is employed alone, the land occupation area is large, obstruction is easy to happen inside the wetland, and ammonia nitrogen and total nitrogen are difficult to meet the water quality standard.