The invention relates to a rotary type hydraulic jet cutting sleeve tool and a construction method thereof. The rotary type hydraulic jet cutting sleeve tool comprises an upper joint (1), a rotary sleeve (5), an outer sleeve (7) and a rotary head (9); one end of the upper joint (1) is connected with an oil pipe (18), the other end of the upper joint (1) is sleeved with the rotary sleeve (5) and inserted into the outer sleeve (7), the rotary sleeve (5) penetrates through the outer sleeve (7) and is inserted into the rotary head (9), the rotary sleeve (5) is connected with the outer sleeve (7) through a bearing, and the rotary sleeve (5) and the rotary head (9) are fixedly connected through screws. According to the rotary type hydraulic jet cutting sleeve tool, the sand-carrying liquid withdifferent pressure and displacement is injected into a well mouth, the rotary head of the hydraulic cutting sleeve tool is driven to rotate so as to complete operation of the hydraulic cutting sleeveand the well cementation cement ring, and the rotary type hydraulic jet cutting sleeve tool has the advantages of being high in hydraulic cutting efficiency, small in chip particle size, easy to return, small in drilling risk, free of application of drilling pressure and the like.