This paper deals whth the buckling as well as postbuckling analysis of axisymmertric shells taking the initial deflection effects into account. Incremental equilibrium equations, based on the principle of virtual work, were derived by the finite element method, the successive step-by-step Newton-Raphson iterative technique was adopted. To define the transition pattern of postbuckling behavior from the prebuckling state more accurately, a simple solution method was developed, i.e. the critical load was calculated by the load extrapolation method with the determinant of tangent stiffness matrix and the equilibrium configuration in the immediate postbuckling stage was obtained by perturbation scheme and eigenvalue analysis. Degenerated isoparametric shell elements were used to analyse the axisymmetric shell of revolution. And by the method developed in this paper, the computer program applicable to the nonlinear analysis of both thin and moderately thick shells was constructed. To verify the capabilities and accuracies of the present solution method, the computed results were compared with the results of analytical solutions. These results coincided fairly well in both the small deflection and large deflection ranges. Various numerical analyses were done to show the effect of initial deflection and shape of shells on buckling load and postbuckling behavior. Futhermore, corrected directions of applied loads at every increment steps were used to determine the actual effects of large deflection in non-conservative load systems such as hydrostatic pressure load. The following conclusions can be obtained. (1) The method described in this paper was found to be both economic and effective in calculating buckling load and postbuckling behavior of shell structure. (2) Buckling and postbuckling behavior of spherical caps is critically dependent upon their geometric configuration, i.e. the shape of spherical cap and quantities of the initial deflection. (3) In the analysis of large deflection problems of shells by the incremental method, corrections of the applied load directions are needed at every incremental step to compensate the follower force effects.