A signal processing system and method for inductive oil abrasive particle sensor, comprising a sensor, an excitation signal generator, an analog signal processing circuit, a MCU signal acquisition module and a computer signal processing module is disclosed. The sensor is provided with two groups of induction coils, the excitation signal generator generates excitation signals and drives the excitation coils of the sensor to output induction signals containing abrasive particle information, and the analog signal processing circuit receives the induction signals output by the sensor and demodulates and amplifies the induction signals. The signal processing system of the sensor applied to online monitoring of oil abrasive particles is simple in structure and convenient to apply, has a complete signal statistics and monitoring interface, and can be used to effectively monitor the size, concentration and other information of the metal abrasive particles in oil in real time.