The strip replacement mining in short-distance thin coal seam is one of the effective methods controlling displacement deformation of overlying strata and surface subsidence in coal mining under buildings and railroads and water bodies. The method has a great theoretical significance and application value by increasing recovery rate of coal resources and cutting down the effect of coal mining on environment and surface of mining area. The numerical simulation method is adopted to study the surface deformation characteristics by the strip replacement mining in short-distance thin coal seam. Such conclusions are drawn as follows: the strip project of forty meters mining with forty meters reserving is quite suitably selected while half of mining rate; ten meters in replacement width of coal pillar is relatively optimum; the feasibility of the strip replacement mining technology is verified by the simulation. Therefore, the strip replacement mining technology has provided one kind of new thought to coal mining under buildings and railroads and water bodies.