The invention discloses an automated material handling system and a material conveying method. The automated material handling system comprises layer material outlets, layer material inlets, double-layer interlayer structures, telescopic supports, telescopic grasping devices, layer moving units and layer control units, wherein each double-layer interlayer structure is arranged at the bottom or on the top of each layer of a storage shelf, the bottom of the current layer of the storage shelf is formed by the upper layer of each double-layer interlayer structure, the top of the next layer of the storage shelf is formed by the lower layer of each double-layer interlayer structure, each telescopic support is arranged at the tail end of each lower layer structure, each telescopic support can carry out forward sliding or backward sliding relative to each lower layer structure, each telescopic grasping device is hung below each telescopic support, and is used for grasping materials, each layer moving unit is arranged on the upper surface of each upper layer structure, and is used for conveying the materials on each layer of the storage shelf to each layer material outlet, or conveying the materials entering each layer material inlet to the interior of each layer of the storage shelf, and each layer control unit is used for controlling each telescopic support to extend forwards and contract backwards, and/or controlling each telescopic grasping device to extend and grasp the materials. The automated material handling system and the material conveying method improve material conveying efficiency, and reduce the danger caused by the phenomenon that the materials fall off from the high position when the materials are conveyed.