A method for manufacturing a retaining wall of an LED is disclosed. The method includes the steps of: providing a substrate and applying a photosensitive layer on the substrate; exposing the photosensitive layer for forming a pattern of the retaining wall of the LED; removing the exposed photosensitive layer by etching process for forming a recess with a shape corresponding to the pattern of the retaining wall; filling the recess with ceramic slurry by screen printing process; drying the left photosensitive layer and the ceramic slurry for hardening the ceramic slurry, and then removing the left photosensitive layer; and sintering the ceramic slurry for forming the ceramic retaining wall.