The invention provides a slag washing water steam recycling and white fog removing system and a recycling method. The slag washing water steam recycling and white fog removing system comprises a slagwashing water steam chimney close to a blast furnace, at least one cooling spraying device and a hot air furnace assembly; the lower portion of the slag washing water steam chimney can contain waste slag discharged out of the blast furnace and carries out slag washing operation, the cooling spraying devices are arranged in the middle of the slag washing water steam chimney and spray atomized waterto the lower portion of the slag washing water steam chimney, the hot air furnace assembly is communicated with the blast furnace and the upper portion of the slag washing water steam chimney, the hot air furnace assembly can convey generated hot air into the blast furnace, and conveys the treated waste gas to the upper portion of the slag washing water steam chimney, the mist spraying cooling direct heat exchange manner is adopted, the cooling efficiency is high, in combination with the humidity and condensation effect of atomized water, a small amount of water is sprayed, and therefore a large amount of water steam can be recycled, water steam which is not condensed is subject to waste gas temperature rise dilution, the water steam saturability is reduced, and white smoke is prevented from being generated.