The embodiments herein provide a prefabricated mineral composite panel and a method for producing the same for constructing the internal walls, the lateral walls and the corner walls in a building. The method comprising the steps of: preparing and assembling a cast, fixing a mesh in the cast, pouring a prefabricated mineral composite into the cast, smoothening and flattening a top surface of the cast, disassembling the cast to withdraw a semi-dried prefabricated mineral composite panel, placing the semi-dried prefabricated mineral composite panel in a drying room for drying the prefabricated mineral composite, removing the dried prefabricated mineral composite panel from the drying room and packaging the prefabricated mineral composite panel.