A method and system for treating domestic sewage and organic garbage are provided. The method comprises the steps of: multi-phase separation, retting, generating sewage gas, and optional biological denitrification and dephosphorization, which can convert the domestic sewage and organic garbage into clear water, sewage gas, organic manure and sludge. The system comprises a multi-phase separation device, a retting device, a sewage gas generating device and a biological denitrification and dephosphorization device, which can treat the domestic sewage and organic garbage effectively and environmental friendly to achieve a reduction in pollution emission.