This paper reports on the improvement of Craig-Bampton (CB) method for transient analysis of structures with large-scale plastic deformation. As is known, the CB method is effective and accurate in reduced order modeling for linear system. In contrast to this, an improved CB method using tangent modes for nonlinear dynamic analysis has been developed. To do this, the incremental governing equations of nonlinear system are linearized in each time step by using tangent stiffness matrix, and the corresponding tangent modes are proved to be orthogonal with respect to mass matrix as well as with respect to tangent stiffness matrix by incorporating the elastic-plastic material behavior. Thus, the tangent modes can be used to assemble the transformation matrix of CB method in nonlinear dynamic analysis. Using the proposed method, two elastic-plastic beams loaded impulsively are examined. Simulation results show that the improved CB method is valid and accurate for transient analysis of structures with large-scale plastic deformation and has lower computational cost compared with full order model.