The invention discloses an IEEE 1588 time synchronization system. By adding a time-stamp processing module, a time-stamp message transceiving sub module, a time-stamp message resolving sub module, a time-stamp message generating sub module, a local time recording register, and an RTC correction / time read-write module in the module are used for combining peripheral components such as a switch module, a PHY and a real-time clock (RTC) module to form a hardware system. When in use, the high precision time synchronization requested by an IEEE 1588v2 protocol can be implemented by using the modes of one-to-one or one-to-many of master-slave synchronization. The invention also discloses a method for implementing the IEEE 1588 time synchronization, which can implement the function of the time synchronization system by processing the time information of master-slave devices in real time. The invention plays an active role in promoting Ethernet construction.