Structures may enter into nonlinear stage under strong earthquake, so precise prediction of nonlinear behavior for building structure in earthquake is important which can assess the earthquake resistance safety of structures accurately. The exact numerical analysis model is required in actual engineering. In this paper the concept of nonlinear dynamic damage is introduced in steel reinforced concrete (SRC) composite structure, based on the theory of continuous damage mechanics. The damage variable is defined and computed by effective plastic strain of material, furthermore, concrete dynamic constitutive model is derived which considered plastic strain of material. Finally, the damage dynamic balance equation is established. Via comparison with test results of a three-story, two-bay SRC frame model which is tested on a shaking table, it is shown that the results of numerical analysis agree well with test results, indicating that the nonlinear dynamic balance equation is capable of describing the dynamic response of SRC frame structure with satisfactory accuracy. The research supplies theoretical basis for the seismic behavior analysis of SRC high-rise buildings.