The light and soft behaviors of the cantilever retaining wall have the characteristics to be adapted to the alternant deformation，but its height is limited. How to utilize its higher ability of safety against overturning and against sliding and self-weight of backfill to improve its height at the same time is a new issue. So a new structure of more-step cantilever retaining wall is studied. Starting from the new structure of cantilever retaining wall，two-step cantilever retaining wall is brought forth. Deformations of retaining back and stresses of backfill have been analyzed by elastoplastic numerical calculation model to simulate construction conditions. The boundaries between backfill and retaining wall，and backfill and floor are simulated by interface elements aiming at reflect interaction of them. In addition，along with the analysis of the mechanical behavior of the cantilever retaining wall and deformation test results from Qinghai—Tibet Railway，its application as a new retaining structure in permafrost regions is discussed. All these work can provide references to future engineering practice.