A method for installing a wood veneer contraction slot is characterized in that the method comprises the following steps that a, a second keel (5) is fixed to the two sides of the contraction slot formed in a building wall (10) by using expansion screws (12); b, a first dry-hanging plate (15) is installed on a base layer plate on one side of the contraction slot through a fastener (17); c, a first dry-hanging plate (15) of a dry-hanging component is installed on a base layer plate on the other side of the contraction slot through a fastener (17); and d, according to the specification of the contraction slot (7) and a gap reserved between a second wood veneer and a left-side base layer plate, the second wood veneer (6) is fixed to the upper face of a third wood veneer (4) through a self-tapping screw, and installation of the wood veneer contraction slot is completed. According to the method for installing the wood veneer contraction slot, the structure of the wood veneer contraction slot is simple, operation is convenient, using of two kinds of textures is avoided, the appearance quality is improved, and the method has the advantages that thermal-expansion and chilling-shrink displacement of the wood veneer is more facilitated, and the method is suitable for shell nosing treatment of various wood veneers.