The invention relates to a reaction system and process for continuously preparing polymethoxy dimethyl ether (DMM_3-8) by a continuous acetalization reaction between an aqueous formaldehyde solution or paraformaldehyde and methanol in the presence of a functionalized acidic ionic liquid as a catalyst. The reaction system of the invention preferably comprises a formaldehyde-concentrating unit, a vacuum-drying unit, an acetalization reaction unit, a product-separating unit and a catalyst-regenerating unit. The process of the invention uses aqueous formaldehyde solution as an initial raw material, which is concentrated in the formaldehyde-concentrating unit to a concentrated formaldehyde of 50-80 wt.%, and vacuum-dried to paraformaldehyde, or uses paraformaldehyde as raw material directly, then obtains DMM_3-8 by an acetalization reaction. The raw materials of the reaction used in the invention are cheap and available easily, and the utilization rate of formaldehyde is high; an efficient separation between the catalyst and product, as well as the reuse of the catalyst and raw materials, are realized by a separation mode of combining extraction and rectification together.