The invention provides a cascaded Ethernet power supply system and an Ethernet power supply method thereof, wherein the Ethernet power supply method comprises the following steps that: each PD (Power Device) is connected with PSE (Power Sourcing Equipment) to form a POE (Power On Ethernet) system by adopting a cascading type; a POE power supply module in the PSE device is started, and a POE control unit of a local end outputs a power supply power to each Ethernet interface; in a process of outputting the power supply power, each PD receives the power supply power output by a superior device through the Ethernet interface, firstly power is supplied for a load of the local end, and surplus power supply power is output to the next stage of PD through the Ethernet interface. According to the embodiment of the invention, the POE system is constructed by adopting the cascading type, on the premise of supplying power for multiple small-power-consumption PDs by the PSE device, port resources of the PSE device can be saved, a power supply line is simplified, and the power supply power out by the PSE device is reasonably and effectively utilized.