To provide a dismantling and recycling system for a waste vehicle and a method thereof which can facilitate the after-treating of a waste vehicle body by recovering parts to be recycled and unnecessary parts with high efficiency.

A working area 1 continuous to an inspection area 8 includes a loop type carrier 6 for moving a waste vehicle lifted with a vertically movable hanger 7, among a plurality of workstations disposed between a vehicle setting station and a vehicle body removing station at low speed sequentially, a recycle parts storage 2 for classifying and storing, parts removed from the waste vehicle at the respective workstations and a dismantled parts stock space 3. A system provided with a vehicle carrying-in device 20 having a fuel recovering device 21 under it is disposed between the working area 1 and the inspection area 8. Use of this system permits the parts to be removed from the waste vehicle, the recycle parts to be recovered, and unnecessary dismantled parts and the waste vehicle body to be transported to after-processing process.