Abstract: An internet phone system and a peer to peer communication method are described. The internet phone system includes a first area DNS, a first area server, a second area server and an upper layer server. When a user calls the individual number of a second internet phone, the first area server looks up the IP address of the second internet phone, through the DNS system, according to the individual number and of the second internet phone and establishes a peer to peer communication between the first internet phone and the second internet phone. When a user calls the internet phone number of the third internet phone, the second area server looks up the IP address of the third internet phone, through the DNS system, according to the individual number of the third internet phone, and establishes a peer to peer communication between the first internet phone and the third internet phone.