The invention provides a light source system and a projection device. A light source is used for generating an exciting light, a color wheel device is used for receiving the exciting light and comprises a first area and a second area, at least two first color sections are arranged on the first area, at least two second color sections are arranged on the second area, a driving device is used for periodically driving the color wheel device, so that under a first operating mode, the light source system can periodically output a first output light sequence formed by a first output light which is alternately generated by at least two first color sections arranged on the first area, under a second operating mode, the light source system can periodically output a second output light sequence formed by a second output light which is alternately generated by at least two second color sections arranged on the second area, the first output light sequence is different from the second output light sequence, and a switching device is used for controlling the light source system to be switched between the first operating mode and the second operating mode. According to the light source system and the projection device, at least two different output light sequences can be generated specific to different operating modes.