The invention relates to sintered ceramsite having water retaining function, and a preparation method thereof, wherein the ceramsite is prepared from the following raw materials by weight: 100 parts of solid waste, 0-30 parts of a pore forming agent, 5-15 parts of a plasticizer, 0.5-2 parts of a water reducing agent, and 15-30 parts of water. The preparation method comprises: weighing solid raw materials according to a certain ratio, and mixing uniformly in a forced stirrer to obtain a mixture; pouring the mixture into a disc granulator, pouring water according to a certain ratio, and granulating; placing the granules in an oven, and drying; and screening, and sintering under a certain firing system to obtain planting sand. According to the present invention, the sintered ceramsite havingwater retaining function uses the silicon-aluminum-component-rich solid waste as the raw material, has a water absorption rate of about 30-70%, and has good water retention effect, wherein the pores of the ceramsite are small, and the water in the pores is stored in the forms of hygroscopic water, membranous water and capillary water so as to increase the effective amount of the water, such that the sintered ceramsite of the present invention can be used as the planting ceramsite so as to provide a certain nutrition and moisture for crops.