Based on the basic principles of damage theory, the shear damage variable of rock and soil mass and the relevant damage evolution equations can be defined. Through analyzing damage performance of rock and soil mass under the lateral shear stress, establishing the damage evolution equations of rock and soil mass under the shear stress and integrating this characteristic into mechanics equations of load transfer mechanism of pile foundation, the analytical solution of the axial force of pile, shear displacement and side friction which distributed along the length of pile by considering the damage characteristic of rock and mass can be obtained. And establish the hyperbolic model of load transfer mechanism of pile foundation after the soil damaged and the model of load transfer analysis based on the shear displacement method in which damage is considered. Finally, the model's validity has proved by comparing a group of effective numerical example. © 2014 ejge.