An improved analysis model for material nonlinearity induced by elasto-plastic deformation and damage including a large strain response was proposed. The elasto-plastic-damage constitutive model based on the continuum damage mechanics approach was adopted to overcome limitations of the conventional plastic analysis theory. It can manage the anisotropic tonsorial damage evolved during the time-independent plastic deformation process of materials. Updated Lagrangian finite element formulation for elasto-plastic damage coupling problems including large deformation, large rotation and large strain problems was completed to develop a numerical model which can predict all kinds of structural nonlinearities and damage rationally. Finally a finite element analysis code for two-dimensional plane problems was developed and the applicability and validity of the numerical model was investigated through some numerical examples. Calculations showed reasonable results in both geometrical nonlinear problems due to large deformation and material nonlinearity including the damage effect.