A rockfall is a typical dynamic problem of a discontinuous block system originating from a dangerous rock mass and always presents serious geo-hazards along highway slopes in mountainous areas. This study aims to investigate the failure mechanisms and movement characteristics of rockfalls through a three-dimensional discontinuous deformation analysis (3D DDA) method and attempts to comprehensively examine the complicated kinematic process of rockfall disasters. In terms of the initial failure and post-movement characteristics (i.e., motion trajectory and kinetic energy) of a rockfall, the effectiveness of 3D DDA is verified by comparing its results with those of laboratory experiments. Taking the K4580 typical high-steep slope undergoing rockfalls along the G318 national highway in Tibet as an example, the initiation and failure of a single boulder and a large-scale rock mass at the source area were simulated by 3D DDA. Then, the movement characteristics of the boulder and massive collapsing rocks along the slopes of different geometrical characteristics, i.e., the slopes before the landslide and after the shallow and deep landslides, were studied. The results show that the 3D DDA has significant advantages in analysing the failure mechanisms of slope rockfalls and can satisfactorily simulate the spatial movement (e.g., lateral deviation and deflection) of blocks by considering the 3D geometry of the slopes and blocks. The 3D DDA numerical simulation can predict the movement range, deposition position, and affected area of rockfall disasters, which can provide a basis for formulating disaster prevention countermeasures in actual projects.