The invention relates to an automatic control system for a metal binding machine and a control method. The metal binding machine is a steel belt binding machine; a mechanical system comprises a belt distributor, a guiding device, a leveling machine, a moving rack, a binding machine head and a guiding chute which are arranged along a steel belt conveying path; the control system comprises an electrical control system and a pneumatic control system; the electrical control system comprises a master controller as well as a touch screen, a signal detection unit, a speed control unit, a pneumatic control unit and an emergency stop unit which are connected with the master controller respectively; and the pneumatic control system comprises an air compression station, an air compressor and a pneumatic valve stand. With the system and the method, programmable logic controller (PLC) procedure and relay logic combined control and alternating-current variable-frequency control are adopted, whole-process automatic control including belt conveying, firm grasping, belt winding, tightening, buckling, cutting and the like is realized, real-time monitoring of the action process and efficient and automatic binding and packaging are realized, and the automation degree and the use performance of the metal binding machine are greatly improved.