Abstract: With the development of urbanization, more and more attention has been paid to the coordination between urban construction and ecological environment. As one of the important types of retaining walls, the research and development of ecological retaining walls have gradually become a crucial part of retaining wall design. A new type of prefabricated ecological retaining wall was proposed in this paper. The engineering practice shows that the retaining wall can effectively establish hydraulic connection on both sides of the wall, which shows a good ecological value. Moreover, the ANSYS numerical simulation method was used to investigate the deformation and stress distribution of the new ecological retaining wall to demonstrate the stability of the ecological retaining wall. Finally, the sensitivity analysis of the main influencing factors of the earth pressure of the retaining wall is carried out by using the AHP (analytic hierarchy process) method, and the results show that the two indexes, i.e., the retaining wall structure and the structural material, are the most important. The research results of this paper provide an effective basis for the actual engineering safety control.