In recent years, improving the efficiency of energy resource utilization has become an urgent priority in combating global warming. Among various solutions, the combined cycle power generation system has received considerable attention. Therefore, to protect the critical high-temperature components of gas turbines (GT), especially the first-stage blades, from aggressive attack by high-temperature combustion gas, the application of low thermal conductivity thermal barrier coatings (TBC) has become an indispensable technology. A critical challenge is the damage and failure of TBCs under complex thermal fatigue environments. In this study, we focus on the problem of cracking around cooling holes. To solve this problem, we attempted to perform numerical simulations of these damages using both the inelastic constitutive equations proposed by Arai [1] for TBC and the Chaboche-type viscoplastic constitutive model for the substrate [2]. These constitutive equations were implemented in the finite element (FE) software MARC. In addition, a fatigue crack propagation simulation algorithm was adopted that eliminates element stiffness when the damage value around the crack tip exceeds a certain critical value. The results of the FE simulation showed that the location of the crack initiation from the cooling hole was significantly affected by the combination of mechanical loading-temperature pattern. It was also found that the crack propagated along the TBC surface or interface depending on the mechanical loading condition. The results further confirm that the damage-coupled inelastic constitutive model can effectively predict the failure behavior of TBC systems under complex loading conditions.