The present disclosure discloses a fabricated air conditioner wall and an operation method thereof, and the fabricated air conditioner wall included a precast wall and a heat pump system embedded in the precast wall. The components of the fabricated air conditioner wall are mass-produced and assembled in factories. The fabricated air conditioner wall mainly includes an indoor heat exchanger, a throttle valve, a condensate water tank, a four-way valve, a wall-buried pipe, a compressor, and an outdoor heat exchanger. In a cooling mode, condensate water is collected in the condensate water tank to cool the refrigerant. In winter, when the precast wall is illuminated by sunlight, a temperature of an outer wall is often higher than a temperature of outdoor air, and this solar energy can be reasonably utilized by the wall-buried pipe, thereby improving the heating effect of the air conditioner itself.