The invention discloses a two-step urban domestic waste landfill treatment system and method thereof. It divides the waste landfill process into two steps: rapid waste degradation, energy conversion, and final disposal of stabilized waste. The system is mainly composed of a rapid waste degradation unit, a gas collection and purification unit, and a final landfill unit. The rapid degradation unit consists of landfill operations. Unit, degradation and gas production unit, garbage stabilization unit, clinker excavation unit and idle unit to be filled, each unit is in a dynamic cycle, the garbage layer is relatively loose and full of water. The invention can significantly accelerate the degradation and stabilization process of urban domestic garbage, realize energy conversion of landfill gas, reduce air pollution, realize in-situ reduction of pollutants in landfill leachate, avoid groundwater pollution, and save landfill waste at the same time The effective landfill storage capacity and covering soil consumption of the site, and the final landfilled garbage is relatively stable, which can avoid uneven settlement and facilitate site closure management.