The invention discloses an integrated heat storage industrial steam supply combined heat and power generation peak regulation and frequency modulation system and an operation method. The system is composed of a coal-fired power generation system, a steam supply system and a fused salt heat storage system. The coal-fired power generation system comprises a boiler, a steam turbine, a condenser, a condensate pump, a high-low pressure heater, a deaerator and a water feeding pump; and the steam supply system comprises a reheater cold section steam extraction adjusting valve, a reheater hot section steam extraction adjusting valve, an industrial steam supply header, a steam generator, a water tank water feeding pump and a steam supply water supplementing tank. The fused salt heat storage system comprises a heating selection valve, a fused salt heat heater, a fused salt electric heater, a fused salt adjusting valve, a high-low-temperature fused salt tank and a high-low-temperature fused salt pump. Heat supply steam comprises reheater cold section extraction steam, reheater hot section extraction steam and steam generated in the steam generator, and the three are matched with one another to meet the requirement of a steam heat supply network. By adjusting the opening degrees of the reheater cold section steam extraction adjusting valve and the reheater hot section steam extraction adjusting valve and the rotating speed of the water tank water feeding pump, the fused salt heat storage assists a coal-fired power generation system to rapidly increase and decrease the load, and the unit operation flexibility is improved.