The present invention relates to a method for forming positioning grooves on torsion wrench, which is not only able to overcome the problem of high cost in milling grooves on torsion wrench, but also able to reduce material cost, the method including the steps as: First, Forming a base body of a torsion wrench; Second, Extrusion-forming positioning sleeve; Third, cutting the positioning sleeve; Fourth, assembling the positioning sleeve to the base body of the torsion wrench: Fifth, assembling adjustable ring and adjustable bushing.