During the operation of centrifugal compressor, failure easily occurs in the presence of complicated external forces. The failure process characterizes with strong nonlinearity, and hence it is difficult to be described by conventional methods. In this paper, firstly, the cracks in different positions are described using crack fractal theory. The basic failure modes of the impeller are summarized. Secondly, a three-dimensional finite element model of the impeller is constructed. Then the von Mises stress under the centrifugal force is calculated, and the corresponding impeller failure process is simulated by “element life and death technology” in ANSYS. Finally, the impeller failure mechanism is analyzed. It can be found that the static stress is not the main cause of the impeller failure, and the dynamic characteristics of the impeller are not perfect because of the pitch vibration modes which appeared in the investigated frequency range. Meanwhile, the natural frequency of the impeller also cannot avoid the frequency of the excitation force.