A grading lifting type retaining dam is composed of a concrete foundation, a cover plate, water-filling rubber bags, a sinking pump, a steel bracing plate and a plate gate. The concrete foundation is a square pit excavated in the position of a riverbed, the concrete cover plate is upturned on the concrete foundation and is slotted in the position corresponding to the plate gate, vertical gate slots are respectively arranged in side walls of the concrete foundation, the water-filling rubber bags are arranged in a cavity between the concrete foundation and the steel bracing plate, the water-filling rubber bags at the bottommost layer are provided with water inlet pipes and are connected with the sinking pump fixed on the upstream riverbed, each water-filling rubber bag is provided with a discharge pipe, and the steel bracing plate is arranged on the water-filling rubber bags; the plate gate is arranged in the gate slot and is provided with a main wheel and a reverse wheel, and P-type rubber water stop is arranged at the position where the plate gate is contacted with the concrete cover plate. The grading lifting type retaining dam has the advantages that water retaining height within the design scope of the retaining dam is controllable, and the dam is novel in structure, low in construction difficulty, prefabricated in construction, short in construction period, good in economic effectiveness and good in application prospect.