The invention discloses a method for processing woolen knitted fabric. The method is characterized by adding the procedures of fulling, drying, calendaring and preshrinking into an after-finishing procedure of the traditional processing technology of the woolen knitted fabric. The whole processing flow sequentially comprises the specific technical steps of knotting fabric, washing, softening, dehydrating and scutching, drying, fulling, drying, sizing, calendaring, preshrinking and checking a finished product. The invention has the advantages that because the four procedures of fulling, drying, calendaring and preshrinking are added into the after-finishing procedure, the processed woolen knitted fabric has the characteristics of stiff and smooth body, compact structure, elasticity, smooth surface, quietly elegant luster and slip and full hand feel, is beneficial to overcoming of the defects of loose organizational structure and defective tightness of the woolen knitted fabric produced with the traditional processing technology and is very suitable for making coats of high-grade leisure suits or jackets, and the like.