The present invention relates to an underwater palace type building and a construction method of an underwater palace type building and, more specifically, to an underwater palace type building that is disposed on the coastline for making better use of the basement of a building and which comprises: an upper plate layer (20) forming the floor around the periphery of a building (30) on an extended line of the ground (11) of the ground floor (10); a protection wall (21) that is contacted with the ground floor (10) on the outside of the circumference of the upper layer and extended downwardly for forming a space inside the protection wall (21); a wave wall (22) in which a part of the circumference of the upper plate layer is contacted with the surface of the sea and which has the upper plate layer extended downwardly at a regular distance for counteracting the waves on the surface of the sea; and a post (23) that is supported from the seabed and connected to the lower end of the wave wall; and to a construction method of an underwater palace building which has underwater floor (32) of the lower part of the upper plate layer of the building constructed under water.
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