The invention discloses a waste plate recycling system and a working method thereof. The recycling system comprises a paste grid separator, wherein the paste grid separator is provided with a first camera and is respectively connected to a crushing bin and an air sorting screen bin through pipelines, a second camera is set in the crushing bin, the crushing bin pipe is connected to a ball grindingbin, a third camera is set in the ball mill bin, the ball mill bin pipe is connected to the air sorting screen bin, a fourth camera is set in the air sorting screen bin, the pipeline at the bottom ofthe air sorting screen bin is connected to a finished product bin and a waste product bin, and a fifth camera and a sixth camera are respectively disposed in the finished product bin and the waste product bin. The working method comprises the following steps: S1, the first camera monitors the working state of the paste grid separator; S2, the second camera monitors the working state in the crushing bin; S3, the third camera monitors the working state of the ball grinding bin; and the fourth camera monitors the working state of the air sorting screen bin.