The　diaphram　wall　in　the　soil　layer　causes　greater　deformation　at　the　bottom,　and　has　a　relationship　with　the　variation　characteristic　of　side　soil　pressure.　An　analytic　elastic　solution　is　derived　to　predict　the　stress　and　the　displacement　caused　by　construction　of　rectangular　diaphragm　wall　panel　trenches　by　using　the　elastic　theory.　Taking　into　account　of　the　limit　case　and　the　characteristic　of　construction　of　underground　continuous　wall,　the　calculation　formula　of　soil　related　to　time　and　displacement　is　made　to　express　the　pressure　distribution　of　soil　acting　on　the　surrounding　of　the　underground　continuous　wall　at　the　beginning　of　the　early　days　of　excavation.　The　stress　of　the　surrounding　of　underground　continuous　wall　makes　redistribution　under　the　far　-　field　stress　after　the　finish　of　the　excavation.　The　formula　of　stress　redistribution　is　calculated　based　on　the　complicated　variable　principle　and　conformal　transformation　method.　The　calculation　model　is　established　to　calculate　the　peripheral　settlement　of　underground　continuous　wall　and　the　stress　-　transfer　of　horizontal　direction　and　the　load　-　transition　of　vertical　direction　are　also　analyzed　in　the　process　of　construction　of　underground　continuous　wall.　Moreover,　the　analytic　solution　of　the　surface　subsidence　under　the　three　dimensional　stress　state　is　obtained　combined　with　the　Mindlin　solution.　The　proposed　theory　is　applied　to　an　engineering　example　through　simulation.　By　comparing　with　the　actual　monitoring　results,　the　theory　is　proved　to　be　effective　and　correct.　Therefore,　it　has　a　positive　influence　on　the　design　and　construction　of　the　diaphragm　wall.　©　2017　Science　Press.　All　rights　reserved.