The invention relates to the technical field of decoration and discloses a multifunctional environment-friendly suspended ceiling and an installing method. According to the technical scheme, the suspended ceiling is composed of a keel frame formed by splicing a plurality of installing pieces, a decorative board detachably connected with the keel frame, a suspender with adjustable length, and a positioning board installed on the top face of a wall, one end of the suspender is connected to the keel frame, and the other end of the suspender is connected with the positioning board through a positioning piece; each installing piece comprises an installing board with an installing hole formed in the middle, as well as first transverse keels, second transverse keels, first vertical keels and second vertical keels which extend upwards from the edge of the installing board, the first transverse keels and the second transverse keels are mutually parallel, and the first vertical keels and the second vertical keels are mutually parallel; and when the plurality of installing pieces are spliced, the first transverse keels and the second transverse keels, and the first vertical keel and the second vertical keel which are adjacent are connected through a plurality of groups of fixing pieces. The effect of improving the installing performance of the suspended ceiling is achieved.