Recovering the waste heat of the flue gas from the boilers of coal-fired units, so that part of the boiler’s flue gas waste heat can be utilized in the turbine regenerative heating system is an important way to increase efficiency and reduce emissions of coal-fired units. In this paper, a 600MW supercritical coal-fired unit is taken as an example, and the conceptual design of a flue gas waste heat cascade utilization system is carried out. Based on the first and second laws of thermodynamics, the thermodynamic perfection of the heat transfer process of the rotary regenerative air preheater, the exergy efficiency of the heat displacement process of the flue gas waste heat cascade utilization system, and the overall performance parameters of the coal-fired unit are calculated and analyzed under different parameters such as the bypass flue ratio and the inlet air temperature of the regenerative air preheater. The energy-saving effect of flue gas waste heat cascade utilization system is restricted by factors such as acid dew point temperature, ammonium bisulfate (ABS) deposition inside the air preheater, etc. Based on the performance analysis of regenerative air preheater and ABS deposition law, considering the structural characteristics and operating parameters of air preheater, this paper gives a criterion number (R-number) of ABS deposition tendency, and analyzes the actual operation performance of flue gas waste heat cascade utilization system considering the restrictions.