The invention provides a special die for a sleeve shear wall. The special die comprises an upper die, a lower die, a left die and a right die, wherein the upper die, the left die, the lower die and the right die are fixedly connected in sequence. The upper die and the lower die are fixed to a die table through magnetic fixing devices. The left die and the right die are of a three-layer structure and comprise side dies I, side dies II and side dies III. The side dies I, the side dies II and the side dies III are fixedly connected to the two ends of the upper die and lower die respectively. Thetop surfaces of the side dies III are provided with a plurality of first clamping grooves. The bottom surfaces of the side dies I are provided with a plurality of second clamping grooves. The lower die is provided with grouting sleeve tool holes. The invention further provides an application method of the die. When the die is used, finished steel cages can be directly inserted into the die withoutbinding steel bars on site, and therefore the production efficiency of shear wall prefabricated components is improved, and high-quality prefabricated components are produced at the same time.