In the field of communications transmission, a method, a device, and a system for generating and receiving a phase polarization modulated signal are disclosed. The device for generating the phase polarization modulated signal includes: a Laser Diode (LD), a time division demultiplexer, a phase precoding module, a phase modulating module, a polarization precoding module and a polarization modulating module. The device for receiving the phase polarization modulated signal includes: an optical splitter, a polarizer, a phase demodulating and receiving unit, a Polarization Beam Splitter (PBS), a balanced receiver, a power divider, an exclusive OR, a delayer and a data interface processing unit. Therefore, problems in the prior art that a Differential Quadrature Phase Shift Keying (DQPSK) signal cannot bear and transmit information at a higher rate and that non-linear effect is strong during transmission are solved, and transmission performance of an optical signal is improved.