The invention discloses an order processing system of high concurrency competitive inventory and a processing method thereof. The order processing system of the high concurrency competitive inventory comprises a virtual inventory background parameter setting module, a database layer stored procedure function module, an application server cluster, an order queue monitoring and dynamic virtual inventory storehouse classifying module, a virtual inventory background management module and a virtual inventory monitoring module. Whether to deduct the inventory of a reserved warehouse or to deduct the inventory of a virtual warehouse in an order in the order processing transactional queue is determined, if the inventory of the virtual warehouse is enough, the deduction of the inventory of the virtual warehouse is selected, a counter is selected through the virtual warehouse and the virtual warehouse is distributed to every order in a round-robin mode, inventory deduction operation is performed according to the distributed virtual warehouse through the order, after the inventory deduction succeeds, meanwhile, relative data of the order in the order processing transactional queue is deleted, and information about the success creation of the order is returned to a user. According to the order processing system of the high concurrency competitive inventory and the processing method thereof, the number of virtual warehouses and the inventory of every virtual warehouse can be adjusted dynamically, the concurrent order processing capacity is greatly improved under the condition of existing software and hardware resources, and the order processing efficiency of high concurrency competitive inventory is improved.