The invention discloses a device and a method for producing biogas by distillers' grain fermentation. The device comprises a mixing tank, a circulating pump, a reaction tank and a return pipe, wherein the mixing tank, the circulating pump and the reaction tank are sequentially connected through a pipeline, and the reaction tank is connected with the mixing tank through the return pipe. The reaction tank is provided with a water distributor, a first reaction chamber, a primary three-phase separator, a second reaction chamber, a secondary three-phase separator, a flow guide pipe, a drain port and an exhaust port, and the mixing tank is provided with a heating device, an emptying port, a stirrer and a feed port. The method for producing the biogas by distillers' grain fermentation includes the steps: 1) preliminarily fermenting distillers' grain wastewater in the mixing tank; 2) performing two-stage anaerobic fermentation treatment for the distillers' grain wastewater in the reaction tank. The device is stable in running, easy to control, less in discharged sludge quantity and capable of generating the biogas with the methane content of 60% or more. The device and the method are applicable to treating high-concentration distillers' grain wastewater, less in sludge loss, good in organic matter removing effect and low in running cost.