The invention belongs to the field of innocent treatment of hazardous wastes, and provides an innocent treatment method for a liquid crystal panel, which comprises the following steps: A. crushing the liquid crystal panel; B. soaking the crushed liquid crystal panel pieces in an acetone solution, performing evaporation condensation on the acetone solution after soaking, and recovering liquid crystals dissolved in the acetone solution; C. soaking the crushed liquid crystal panel pieces which have been soaked in the acetone solution in a sulfuric acid solution, and recovering solid-phase residue after soaking; and D. performing extraction and back extraction treatment on the sulfuric acid soaking solution, and recovering to obtain an indium-containing purified solution. The invention provides an innocent treatment system for a liquid crystal panel, which comprises a crusher, a feeding device, a soaking device, a distilling device, a condensing device, a first storage device, a second storage device, a third storage device, a fourth storage device, a fifth storage device, a sixth storage device, an extraction device, a back extraction device, a transfer pump and pipelines for connection. The invention is used for innocent treatment of a liquid crystal panel.