A paper money detection and counting device comprises: a sensor unit (10) which is used for converting the output signals of a plurality of sensors distributed on a paper money transmission passage into a transmission state which characterizes whether paper money is present or not, each sensor corresponding to a paper money counter; a calculation unit (20) which calculates the paper money distance between the current detection position of any sensor and the front end position of the currently detected paper money according to the transmission state output by the sensor unit (10); and a control unit (30), once the paper money distance calculated by the calculation unit (20) goes beyond a paper money spacing standard value, the control unit (30) looking up the transmission states output accumulatively by the sensors currently, when it is found that at least one transmission state characterizes that the paper money state changes from existence to nonexistence, adding 1 to the count value of the paper money counter corresponding to the sensor, and when it is found that at least one transmission state characterizes that the paper money state changes from nonexistence to existence, judging that the current paper money detection is completed, and sending to the calculation unit (20) the position where the paper money distance from the front end of the currently detected paper money is closest to the paper money spacing standard value, as the front end position of the next detected paper money, so as to enable the calculation unit (20) to use the front end position of the next detected paper money as an initial position to calculate the distance of the next paper money.
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