The invention relates to a dual utilization device and method for exhaust steam waste heat produced during superheat steam drying of sludge The device comprises a shaftless screw feeder, air valves, a heater, a double-shaft stirring dryer, a sludge particle forming machine, a net belt dryer, a tail gas washing tower, cyclone separators (A and B), fans (A and B) and a heat exchanger, wherein the shaftless screw feeder, the double-shaft stirring dryer, the sludge particle forming machine and the net belt dryer are sequentially connected, and a material channel is formed; the heater, the double-shaft stirring dryer, the cycle separator A, the fan A and the air valve B are sequentially connected to form an internal circulation air channel; the shaftless screw feeder, the cyclone separator B, the heat exchanger and the tail gas washing tower are sequentially connected to form an external air channel; the heat exchanger, the fans and the net belt dryer are combined for drying. The device and the method have the advantages that dual utilization of exhaust steam waste heat is realized, the device and the method are efficient and energy-saving, and condensation can be effectively prevented; zero-pollution discharge of waste water and waste gas is realized; formed sludge can be used for preparing fertilizers, and reutilization of the sludge is realized.