The bench method dynamic construction process of Xin Baotashan tunnel which located in the grade IV surrounding rock is simulated by using the finite element method. The variation of displacement and stress field of the surrounding rocks and the internal force of the lining structures during every excavation step is calculated. The state of the surrounding rocks can be predicted by the numerical simulation results, and the construction plan and construction sequences can be guided by the analysis results. At the same time the reasonability and feasibility of the design parameters can be judged by analyzing the internal forces of the lining structures. Analysis and experimental results showed that the stability of the surrounding rocks is good by using the bench method construction to the IV grade surrounding rocks and the design parameters of the lining structures are feasible.