An investigation of computer simulation is presented to analyze the effects of strain localization and damage evolution in large plastic deformation. The simulation is carried out by using an elastic-plastic-damage coupling finite element program that is developed based on the concept of mixed interpolation of displacement/pressure. This program has been incorporated into a damage mechanics model as well as the corresponding damage criterion. To illustrate the performance of the proposed approach, a typical strain localization problem has been simulated. The results show that the proposed approach is of good capability to capture strain localization and predict the damage evolution.