With the rapid development of urban economic construction, the project of urban underground space keeps increasing. Excavating and drilling adjacent to underground structures are usually encountered in engineering construction; especially for the large area and deep excavation method such as diaphragm retaining wall, which would affect original underground structures with safety and quality trouble. According to the engineering case, the paper introduced the application of diaphragm retaining wall in foundation pit near subway structures in Shanghai. By the feasibility analysis, the relevant controlling methods were adopted in the construction process to minimize the deformation effect to subway structures. The practice shows that diaphragm retaining wall is suitable for similar complex project.