The invention relates to a prestressed loam wall and a construction process thereof. The prestressed loam wall comprises a wall body, wherein the wall body is a loam wall body, sleeves are arranged in the wall body, the sleeves are arranged along the length direction of the wall body and penetrate through the whole wall body, prestressed steel bars are arranged in the sleeves, fixed plates are respectively arranged on both sides of the wall body, threads are formed on both ends of the prestressed steel bars, and the both ends of the prestressed steel bars respectively pass through the two fixed plates and are fixed with the fixed plates through washers and locking nuts. According to the prestressed loam wall and the construction process, a plurality of groups of prestressed steel bars are arranged along the height direction of the loam wall, the prestressed steel bars are arranged along the length direction of the loam wall, and additionally, the prestressed steel bars are fixed with two side surfaces of the loam wall through steel plates, so as to apply inward extrusion force to the loam wall, so that the loam wall is in a multidirectional pressed state, the compression resistance and the shear resistance of the loam wall are effectively increased, vertical straight joints can be effectively prevented from being formed, the height-thickness ratio of the wall body is effectively reduced, and the building height of the wall body is increased on the premise that the thickness of the wall body is not increased.