This paper proposes a new, simple and efficient method for nonlinear simulation of arch dam cracking from the construction period to the operation period, which takes into account the arch dam construction process and temperature loads. In the calculation mesh, the contact surface of pair nodes is located at places on the arch dam where cracking is possible. A new effective iterative method, the mixed finite element method for friction-contact problems, is improved and used for nonlinear simulation of the cracking process. The forces acting on the structure are divided into two parts: external forces and contact forces. The displacement of the structure is chosen as the basic variable and the nodal contact force in the possible contact region of the local coordinate system is chosen as the iterative variable, so that the nonlinear iterative process is only limited within the possible contact surface and is much more economical. This method was used to simulate the cracking process of the Shuanghe Arch Dam in Southwest China. In order to prove the validity and accuracy of this method and to study the effect of thermal stress on arch dam cracking, three schemes were designed for calculation. Numerical results agree with actual measured data, proving that it is feasible to use this method to simulate the entire process of nonlinear arch dam cracking.