The invention relates to an assembly type building prefabricated steel structure connecting and positioning machine and a construction method. The machine comprises L-shaped fixing seats, electric hydraulic pushing rods, reinforcing rods, connecting plates, a supporting seat, placing seats, clamping mechanisms and a driving mechanism, wherein the number of the L-shaped fixing seats is two, one ends of the two L-shaped fixing seats are fixed through the connecting plates, the reinforcing rods are arranged at one sides of the L-shaped fixing seats, the electric hydraulic pushing rods are arranged at the upper ends of the L-shaped fixing seats, the outer walls of the electric hydraulic pushing rods are welded with bearing trays, the supporting seat is arranged at the upper ends of the trays,the driving mechanism is arranged at the center of the top of the supporting seat, the placing seats are welded to the tops of the electric hydraulic pushing rods, and the clamping mechanisms are arranged at the two side walls of the placing seats. According to the machine and the method, two steel beams can be connected and positioned at the same time, so that the working efficiency is high, andthe feeding amount of the two steel beams can be guaranteed to be the same; and meanwhile, the multi-stage clamping mechanisms are adopted to fix the steel beams so that the contact surfaces between clamping structures and the steel beams cannot slip, and the repeated operations are not needed.