The invention relates to a raw material outer circulation final grinding system using a self-screening function vertical mill and an application, and belongs to the technical field of building material machinery. The raw material outer circulation final grinding system comprises the vertical mill, a vibrating screen, a lifting machine, a powder selecting machine, a cyclone cylinder, a dust collector and a fan; the vertical mill and the vibrating screen are connected to form a circulation system; the vertical mill, the vibrating screen, the lifting machine and the powder selecting machine are sequentially connected to form a circulation system; the vertical mill, the vibrating screen, an elevator, a powder concentrator and the cyclone cylinder are sequentially connected to form a raw material final grinding system; and the powder concentrator, the cyclone cylinder, the dust collector and the fan are sequentially connected to form a circulation system. The vertical mill has a self-screening function and comprises a screening device, the screening device is used for returning raw materials or large materials which are not ground to a grinding disc for further grinding; and the screening device is fixed on a material blocking ring and/or an air ring. According to the raw material outer circulation final grinding system, unpolished materials are reduced to enter the elevator, the system cycle load is reduced, the system energy consumption is reduced, the height of a workshop is reduced, and the investment cost is reduced.