The invention discloses a method for utilizing octenyl succinic anhydride to produce starch ester in circulation. The method comprises steps that: water is added to 100 parts of dry basis starch; the starch is homogenized and emulsified; the pH value of the starch is regulated to 8 to 10; the starch is added to an octenyl succinic anhydride solution containing 3 parts of octenyl succinic anhydride, and is subject to a reaction; when the reaction is finished, the pH value of a reaction liquid is regulated to 5.5 to 6.5; the reaction liquid is filtered, and is processed from processes of washing, drying, crushing and sieving three times, such that white starch sodium octenyl succinate is obtained; a residual from the filtering process is mixed with the filtered washing solution, such that an octenyl succinic anhydride mixed solution is obtained; the solution is distilled, octenyl succinic anhydride is supplemented, and a solvent is added for dissolving, such that an octenyl succinic anhydride solution is obtained; water and ethanol obtained from distillation are fractionated, ethanol concentration is adjusted, and the materials can be repeatedly used. The method provided by the invention is advantaged in that: the technology is simple and is easy to control; recycling of octenyl succinic anhydride and recycling of the solvent can both be realized.