In view of the facts that the failure simulation method adopted in elasto-plastic analysis lacks objectivity to a certain degree, and the currently used instability criteria are seriously influenced by artificial factors, a calculation method for the element bearing ratio, considering the characteristics of concrete arch dams, is put forward based on the Mohr-Coulomb yield criterion, and the adjustment of the element elastic modulus by means of the uniformity of the bearing ratio and the base bearing ratio is discussed. Then, an ultimate bearing capacity analysis method of arch dams based on the elastic compensation method and plastic limit analysis method is put forward. Analysis of an engineering case shows that this method is reasonable and effective.