Finite element simulation of stress distribution of thermal barrier coating system (TBCs) is presented. Two dimensional periodic unit cells are used to examine the stress development and critical sites with high potential of cracking during thermal cycling. During cooling, high tensile out-of-plane stresses in the peak of the thermally grown oxide (TGO) are formed, which lead to crack initiation in the vicinity of TGO and the interface. At the same time, high compressive stresses developed in the valley domain. The influence of crack within the top coat in the vicinity of the TGO is also investigated. The finite element analysis shows that crack seriously affects stress field development and the thermal-mechanical behavior of TBCs. Based on the finite element analysis results one can conclude that imperfections and its development should be always considered to be a crucial parameter for TBCs life.