In this paper, a computational model for nonlinear crack damage analysis of concrete gravity dam-foundation boundary region subjected to earthquake loading is suggested. An enhanced model based on the Lee-Fenves plastic-damage model is used as the inelastic material model for a concrete dam structure and rock foundation. The suggested model is implemented numerically and used for computational earthquake simulation of Koyna dam, which was severly damaged from the strong earthquake in 1967. From the numerical result it is demonstrated that the suggested computational model can realistically represent crack initiation and propagation in the dam-foundation boundary region.