The invention discloses a method and equipment for upgrading, drying and forming lignite. The method comprises the steps of 1) pulverizing the lignite into pulverized lignite, 2) adding sodium hydroxide to the pulverized lignite, stirring, filling in water vapor, allowing the lignite to react sufficiently, and 3) drying the lignite after the reaction, conducting pressure forming, and obtaining the lignite. According to the method for upgrading, drying and forming the lignite, raised dust in a drying process is reduced greatly, so that atmospheric pollution is reduced and a working environment is improved; the content of lignite ash in moisture volatilized by a drying machine is reduced, so that the moisture is recovered greatly; and the density and the strength of the formed lignite are increased and improved, so that a binder is not required to be added in a forming process, and requirements of transportation and production can be met conveniently. In addition, the equipment for upgrading, drying and forming the lignite achieves upgrading, drying and forming integrated continuous cleaning production of the lignite, and is suitable for large-scale industrial production of upgrading, drying and forming of the lignite.