A system for producing biomass vinegar and charcoal includes a furnace, which has an outer shell defining a lower combustion chamber and an upper heating chamber, and an inner tank removably received in the heating chamber. A cooling pond has a cooling region to accommodate the inner tank. A condenser in a collection barrel condenses smoke gases from the inner tank to produce biomass vinegar. A first temperature sensing pipeline removably connects the inner tank, After the biomass is carbonized, the first temperature sensing pipeline is removed from the inner tank, and the inner tank is moved to the cooling region to be cooled by a sprinkler.