An Excavation Damaged Zone (EDZ), in which rock properties are permanently changed due to blasting impact or stress redistribution, can influence the behavior and stability of structures. In this study, the mechanical stability of an underground opening was simulated by using FLAC, which is a two-dimensional modeling code, with a consideration of EDZ. A sensitivity analysis was also carried out with fractional factorial design. From the modeling, it was found that the behavior and the stability of an underground tunnel are strongly dependent on the existence of the EDZ. The sensitivity analysis showed that the key parameters affecting the factor of safety around the tunnel are in-situ stress ratio, depth, cohesion, reduction ratio, internal friction angle, and height and width of the tunnel. It is necessary to consider the EDZ, which can significantly affect mechanical stability in tunnel design.