The invention discloses an embedded recoverable expansion anchor cable and a construction method thereof. The embedded recoverable expansion anchor cable comprises a grouting pipe, expansion unfolding arms, steel strand wires, a steel strand wire free sliding cabin, a fixing and bearing device, and a flexible telescopic sleeve, wherein the steel strand wire free sliding cabin is sleeved onto the upper part of the grouting pipe; the fixing and bearing device is arranged at the lower end of the grouting pipe; the expansion unfolding arms are uniformly distributed on the periphery of the grouting pipe; the upper ends of the expansion unfolding arms are fixed to the bottom of the steel strand wire free sliding cabin; the lower ends of the expansion unfolding arms are fixed to the top of the fixing and bearing device; the steel strand wire free sliding cabin can move in the axial direction with respect to the grouting pipe; the middle of each of the steel strand wires moves around the bottom of the fixing and bearing device; the two ends of each of the steel strand wires are respectively fixed onto the steel strand wire free sliding cabin and the two end parts of each of the steel strand wires respectively extend from the steel strand wire free sliding cabin; and the flexible telescopic sleeve is sleeved on the expansion unfolding arms and the steel strand wires. According to the embedded recoverable expansion anchor cable, the steel strand wires can be recovered and have higher bearing capacity.