The invention relates to a system for realizing wavelength reuse of a self-injection wavelength division multiplexing passive optical network and a method thereof. The system is formed by an optical line terminal OLT connected with remote nodes RN through a feed fiber, and the remote nodes RN connected with a plurality of optical network units ONU, wherein 2n optical network units ONU are divided into a group I of the optical network units ONU and a group II of optical network units ONU, and the number of the optical network units ONU in each group is the same, while uplink signals and downlink signals of two groups of the optical network units ONU are just opposite and do not have interaction with each other; the remote nodes are connected with the two groups of the optical network units ONU respectively and realize downlink signal separation, uplink signal combination and generation and return of seed light of the two groups of the optical network units ONU. The method realizes wavelength reuse by the system, divides the usable wave band into a wave band A and a wave band B, wherein the group I of the optical network units ONU carries the uplink signal and the seed light thereof by the wavelength of the wave band A, carries the downlink signal by the wavelength of the wave band B, while the group II of the optical network units ONU are just the opposite, thereby reusing the uplink signal and the downlink signal of the group I of the optical network units ONU by the group II of the optical network units ONU, not only avoiding that the seed light and the downlink signal cannot be separated by the optical network units ONU due to the fact that the seed light and the downlink signal are in the same wave band and are aliased with each other, but also realizing doubling of the number of the optical units ONU supported by the system and the wavelength utilization ratio.