The invention discloses a fabricated concrete box retaining wall and construction method thereof. The fabricated concrete box retaining wall comprises a cast-in-situ foundation and a wall body arranged on the cast-in-situ foundation, concave string-shaped grooves are formed in the upper surface of the cast-in-situ foundation, the wall body is of a multiple-layer structure, each layer of the wall body comprises a plurality of prefabricated concrete box single bodies, the end parts of the two adjacent prefabricated concrete box single bodies in a single layer wall body are connected through side wall clamping blocks, compared with a traditional gravity retaining wall, according to the fabricated concrete box retaining wall, hollow concrete boxes are filled with waste soil stone materials, masonry or concrete cubic amount is reduced about 40 %, the cubic meter of earth and stone waste in engineering is utilized reasonably, the waste cubic of engineering is reduced, the engineering cost can be reduced over 15 %, the smallest assembling unit of the fabricated concrete box retaining wall is the prefabricated concrete box single bodies, all the prefabricated concrete box single bodies are the same in size, standardized production is facilitated, assembling construction is convenient, and the field construction period can be lowered over 30 %.