Jinoping No.1 is a dominant reservoir cascade hydropower station which locates at the downstream of Yalong river. The underground powerhouse locates at the right bank of the dam, lithology is marble that belongs to the second member of Zagunao group. It is constructed at region with very complicated geological conditions and high geo-stress. Concrete cracking, spalling and steel buckling and bending occurred at the downstream crown after supporting. This paper analysed the causes of deformation and failure through geological analysis and numerical simulation, and concluded that deformation and failure mainly occurred at the region where the quality of surrounding rock belongs to Ⅲ1 and had nothing to do with the unstable block cut by cracks; stress field of surrounding rock varied continueously with the proceeding of successive excavation of underground powerhouse, so the compressive stress and shear stress concentration occurred which caused the compression and shear failure of downstream crown and made it bending to the free face. It is significant to the further enforcement of this project and to the research on other similar underground caverns theoretically and practically.