The invention belongs to technical field of pipeline renewal construction, and discloses a pipe expanding type pipeline renewal construction method increasing stress relief holes. The method includesthe steps of construction preparation, construction surveying and setting out and on-site geophysical prospecting, setting of positioning observation points of road surface soil inlet and outlet points and surrounding pipelines, preparatory work before drilling, test drilling, drilling of the stress relief holes, old pipeline bursting extrusion, sending rack installation and dragging back pipelineracking, pipeline dragging back, slip casting and backfilling of the stress relief holes, on-site cleaning and physiognomy restoration. According to the method, soil displacement can be effectively reduced, and damage to surrounding structures is reduced; traffic impacts are reduced, and social benefits are good; land uplift is not caused, and secondary construction is reduced; the expansion rateof a renewed pipe diameter is larger and the soil density limit is reduced; and the construction period can be effectively shortened, the labor input is reduced, and the work efficiency is improved.Compared with a traditional cut and cover method, a pipe jacking method and a traditional pipe expanding method, the pipe expanding type pipeline renewal construction method has obvious improvements in economic benefits and social benefits and has obvious technical advancement.