In order to make full use of the stone powder resources, the effects of stone powder content in limestone artificial sand on the shrinkage of hydraulic concrete were studied through the experiments. The micro-test techniques such as SEM, XRD and IR were applied to study the hydration products and microstructure of hydraulic concrete, with the stone powder content of 15% and 20%. Also, the microscopic mechanism for the effect of stone powder content on the shrinkage performance of hydraulic concrete was discussed. The results show that the shrinkage rate of hydraulic concrete with different stone powder content increases first and then decreases; the stone powder in the limestone artificial sand has an active effect, which participates in and promotes the hydration reaction of the system to some extent, and improve the microstructure of hydraulic concrete; the stone powder not involved in the hydration reaction acts as a filling, to reduce the average pore size of the hydraulic concrete, which increases the capillary pressure inside the concrete and the dry shrinkage rate of the concrete.