The engineering geological condition of the mine goaf and the exploitation method are proposed with an engineering example. With the study on surface failure mechanism, the structural stability of key layer and the deformation control function of damaged buildings, the simulation model is built. The surface movement is analyzed with FLAC3D. Moreover, the building stability and impacts of mine goaf are evaluated. Finally, the disposal measures of mine goaf and the protection methods of buildings are given. By comparing the simulation results with the practical observation data on surface movement, the condition and method produced are efficient and precise.