Abstract: To explore the damage mechanism and characteristics of tunnel and surrounding rock induced by fault movement, based on the engineering prototype of the Xianglu mountain tunnel, a water diversion project in central Yunnan province, a large-scale shear dislocation model of tunnel crossing a strike-slip fault rupture zone was carried out, and the results was verified by ABAQUS numerical simulation. Results show that the lining damage mainly comes from tension and few parts come from compression in the process of fault movement. The lining deformation and failure are mainly concentrated near the rupture zone, the severe area is on the slipping surface, and the deformation of the lining decreases with the increase of the distance from the slipping surface, the areas with the most severe damage in the cross section appear in the crown and right-springline of linking. At the beginning of fault movement, the tensile damage factor of lining in the middle part of the fracture zone has reached a higher order, and the lining is partially cracked and damaged. With the increase of fault movement, the damage factor accumulates continuously. When the fault displacement reaches 25 mm, the overall damage factor of lining has accumulated a higher order, and the damage of the lining is close to the final condition of the test. The fracture zone of surrounding rock is mainly within the range of 30 cm from the slipping surface, the deformation of surrounding rock decreases gradually with the increase of the distance from the slipping surface.