The invention relates to an electrical sheet steel magnetostriction measurement system and method. A computer controls an arbitrary waveform generator to produce waveforms, the arbitrary waveform generator is controlled to change the waveforms according to data uploaded by a multi-channel data acquisition unit, an iterative algorithm is utilized to obtain expected waveforms of magnetic polarization intensity induced voltage, and a magnetostriction loop line of a measured sample is further calculated. A power amplifier performs amplification processing on a received signal, and an excitation device fixes the measured sample to enable the measured sample to work in the closed magnetic circuit condition and exerts stress in the magnetization direction. A laser vibration measurement instrument is used for measuring the vibration speed. The multi-channel data acquisition unit is used for acquiring voltage, current and the vibration speed. The electrical sheet steel magnetostriction measurement system and method achieves measurement of the electrical sheet steel magnetostriction loop line under the conditions of the closed magnetic circuit and the stress, meets a general using environment of an electrical sheet steel, utilizes the iteration method to enable the magnetic polarization intensity induced voltage waveforms to be sine waves, replaces a traditional analog feedback loop and has the advantages of being not prone to oscillation, wide in frequency range and the like.