A multi-party multi-level quantum key distribution protocol based on entanglement swapping is proposed. A perfect complete orthonormal basis of the bi-party three-level systems is first constructed. By using this basis and swapping the entanglement, bi-party quantum key distribution is realized. In addition, three-level can be generalized to multi-level and bi-party to multi-party,i.e., multi-party multi-level quantum key distribution based on entanglement swapping can be achieved. Using entanglement swapping and multi-level key distribution can significantly increase the efficiency of the detection of eavesdropping, the key generation rate and the information flux.