The invention discloses a connecting structure and a construction method of a fabricated shear wall structure. The connecting structure comprises a prefabricated shear wall, steel structure connectingparts, a horizontal connecting unit and vertical connecting units, wherein a notch is reserved at the top of the lower-layer prefabricated shear wall, the horizontal connecting unit is arranged in the notch in a poured mode, vertical anchor ribs are reserved at the bottom of the upper-layer prefabricated shear wall, the vertical anchor ribs are inserted into and anchored in the horizontal connecting unit, horizontal connecting ribs are reserved at the ends of the two sides of the lower-layer prefabricated shear wall and the upper-layer prefabricated shear wall correspondingly, the steel structure connecting parts are installed at the ends of the two sides of the lower-layer prefabricated shear wall and the upper-layer prefabricated shear wall, the horizontal connecting ribs are anchored with the steel structure connecting parts, the steel structure connecting parts define vertical pouring spaces at the ends of the two sides of the lower-layer prefabricated shear wall and the upper-layer prefabricated shear wall, and the vertical connecting units are poured in the vertical pouring spaces. According to the connecting structure, the cast-in-place or grouting mode is adopted in the connection of the prefabricated shear wall, so that the problem that steel bars cannot be aligned is solved, the alignment difficulty between the steel bars and a sleeve during field hoisting of the prefabricated shear wall is greatly reduced, and the reliability and the construction speed of the connection position are improved.