The invention discloses a method of manufacturing an artificial fish reef with a residence frame to be disassembled. The method includes the preparing steps of cutting reinforced concrete of the residence frame to be disassembled, processing notches and processing the surface of the reinforced concrete. In the notch processing step, organosilicon emulsion is used as a waterproof coating for the fracture face of the reinforced concrete, surface coating is conducted, the coating permeates into the surface layer of the concrete by 2-3 mm to form a waterproof layer, and consequently sea water is prevented from entering; cured type fluorocarbon resin paint is used for forming a finishing coating, and then the finishing coating is dried. The method has the advantages of being low in manufacturing cost, capable of effectively using the residence frame to be disassembled and reducing environment pollution, low in heavy metal content and beneficial for fish shoal elusion or survival and achieving resource recycling.