The invention discloses a self-resetting energy dissipation system with a fabricated frame structure and a construction method of the self-resetting energy dissipation system. The self-resetting energy dissipation system includes a prefabricated column connected with a foundation, a prefabricated reinforced concrete cross beam, a prefabricated reinforced concrete beam column sub-structure and dryconnection, and further includes a self-resetting energy dissipation device arranged between interbedded prefabricated frames; and the dry connection includes friction-type high-strength bolt connection between columns and pin shaft connection between beam-beam artificial plastic hinge connecting nodes. The invention further discloses the construction method for the self-resetting energy dissipation system with the fabricated frame structure. According to the self-resetting energy dissipation system with the fabricated frame structure and the construction method of the self-resetting energy dissipation system, the shortcomings of current prefabricated structural systems are overcome, and an anti-seismic target of 'strong column and weak beam, strong node and weak component' is realized; through reasonable arrangement of the self-resetting energy dissipation device, the energy dissipation capacity of the structural system is enhanced, residual deformation of the structure is effectivelyreduced or avoided, and the allimportant social value and economic significance for effectively mitigating earthquake disasters in high-intensity areas are achieved; and meanwhile, the construction process is simplified, the construction quality is guaranteed, practicality is high, and use and promotion are convenient.