The invention discloses a laser phase generated carrier doppler vibration signal detection system including a signal generation unit, an optical path unit, and a demodulation unit, and the input end of the demodulation unit is connected two orthogonal signals sin (Csin (Omega t) and cos (Csin (Omega t) from the signal generation unit and an interference signal from the optical path unit, so that the demodulation unit can demodulate the vibration signal to be detected. The invention discloses a laser phase generated carrier doppler vibration signal demodulation method. Through the adoption of an orthogonal phase lock +DCM demodulation method, a vibration signal, after being subjected to electro-optical modulation, of a target to be detected is demodulated by multiplication, low-pass filtering, differentiation, subtraction, and integration calculation. According to the invention, the environmental disturbance resistance property of a conventional homodyne detection can be greatly improved at a low cost; and meanwhile, compared with a conventional laser doppler vibration detection method based on acousto-optic frequency shift, the method provided is high in precision, and the system is simple in optical structure and has good environment adaptability.