The invention provides a formwork positioning system for pouring and tamping concrete and an installation method thereof. The formwork positioning system comprises a base surface, a formwork, a vertical reinforcement, a horizontal reinforcement and a positioner, the formwork is arranged on the base surface, a control sideline is marked on the base surface, the positioner comprises a connecting steel bar, a sleeve and a regulating screw, the first end of the connecting steel bar extends into the inner part of the base surface, the second end of the connecting steel bar is welded on the side circumferential wall of the sleeve, the inner part of the sleeve is provided with an internal thread, the external thread of the regulating screw is matched with the internal thread of the sleeve, and one end of the regulating screw penetrates through the sleeve and is connected with the formwork. The installation method is the installation method of the formwork positioning system. The formwork positioning system can position the root position of the formwork so as to prevent the formwork from shifting during the process of pouring and tamping concrete. At the same time, the installation methodalso avoids the damage to concrete internal pipelines.