The invention discloses a fabricated building sleeve connecting grouting material based on phosphorus and magnesium materials and a construction method of the grouting material. The grouting materialis prepared from the following raw materials in parts by weight: 80-120 parts of magnesium phosphate cement, 3-16 parts of an additive, 10-25 parts of an admixture and 0-130 parts of aggregates. The phosphorus-magnesium grouting material has good corrosion resistance and freeze thawing resistance, good durability and fluidity, low contractibility, good steel adhesion, strong self-compaction property and environment temperature adaptability, is easy for pouring and can be used for construction at any time; an oxide film can be formed on the surface of the grouting material, has very good associativity and high bonding strength and has good attachment property with sleeves and steel bars; the grouting material can be mixed on site and convenient to construct, the construction procedure is simplified, the grouting material can be condensed and hardened after 10-30 minutes of the grouting, the compressive strength of the phosphorus-magnesium grouting material can reach over 40MPa after 1.5hours of the grouting, and the phosphorus-magnesium grouting material basically does not need to be maintained, so that the construction efficiency is improved, the construction period is greatly shortened, and the cost is saved.