The invention discloses a lithium iron phosphate power battery management system and a lithium iron phosphate power battery management method. The lithium iron phosphate power battery management system comprises a main controller, a voltage detection circuit, a temperature detection circuit, an insulation monitoring circuit, an equalization circuit, a protection circuit, a DC / DC (direct current) power supply circuit, a pre-charging circuit, a cooling fan, a power battery pack, a personal computer (PC), a vehicle-mounted controller and a storage module. The lithium iron phosphate power battery management system has the following functions of detecting monomer voltage and total voltage of a battery, detecting charging and discharging currents of the battery pack, diagnosing faults of the battery pack and performing mandatory protection for over charging, over discharging and equalization and temperature protection, accurately estimating various states (SOC, SOH and RUL) of the battery pack, performing efficient and rapid equalization, charging in advance, measuring insulation of the battery pack, recording running and fault data of the battery pack, communicating with the vehicle-mounted controller and a display system, and communicating with a battery charger and providing battery charging information for the battery charger.