The invention discloses a multifunctional hydraulic hanger for bridge prefabricated foundation construction and construction steps thereof. The multifunctional hydraulic hanger comprises a combined girder system structure and a prefabricated abutment, wherein a lifting lug for lifting a whole suspension system is arranged on the combined girder system; a preformed hole allowing a steel pipe pile to pass though is formed in the prefabricated abutment in the vertical direction; a through hole is formed in the combined girder system structure; the girder system structure is integrally linked with the prefabricated abutment through a tensioned prestressed steel reinforcement sleeved in the through hole; a horizontal position regulating mechanism is arranged on the combined girder system structure; and a vertical position regulating oil cylinder and a steel pipe pile guiding mechanism for regulating the verticality and overall elevation of an abutment body are arranged between the lower end surface of the combined girder system structure and the steel pipe pile. The multifunctional hydraulic hanger for the bridge prefabricated foundation construction further has the function of accurately positioning the prefabricated abutment in addition to the functions that the conventional hanger only possesses; and therefore, the construction difficulty caused by system transformation that the conventional hanger is adopted for hanging, then accurate positioning is realized and the like is reduced; and the construction efficiency is improved.