In order to study the dynamics property and damage evolution of frozen aeolian soil in the west of Liaoning Province, laboratory test have been done by using the DDS-70 dynamic triaxial test machine. The damage evolution formula of frozen soil is established, and the dynamic evolution curve between damage variable and strain is sketched. The research results show that the process on damage of frozen soil can be divided into three stages, and the increase of damage variable is non-linear. The speed of damage growth is fast in plasticity damage stage, but the damage growth is relatively flat and smooth in micro-crack damage stage. Aiming at initial stages of damage in frozen soil, its microstructure is observed by using scanning electronic microscope (SEM). The occurrence of interior micro-cracks begins with the middle of sample. From the middle to ends in the sample, the micro-cracks are in circular growth. Through transfixion and collection of cracks, the inclined cracks come into being and enlarge step by step.