Water-bearing fault of subsea tunnel has fissure water developed, fractured surrounding rock with low strength, which gets a risk of sudden water inflow and affects the tunnel security. This paper takes the geological forecast and treatment for water-bearing fault of the Qingdao kiaochow bay subsea tunnel for example, according to the water assignment characteristics, using the detect method of TEM and advance borehole to make accurate decision for the position of water-bearing body、the scale of fracture zone and the inflow of water. Through the analysis of results, the grouting form, materials and parameters are chosen and adjusted. The grouting material seals the water flowing fracture, forming water-stopping curtain outside tunnel excavation contour line and strengthening the fault fracture zone to improve the stability of rock.