A method for computing slip-line fields in the case of cohesionless backfills with stress discontinuity was proposed. The potential failure zone is divided into the Rankine zone and the transition zone, and the Rankine zone is rigorously determined using the theory of plastic mechanics. The potential failure zone and the Rankine zone are then further divided into a series of triangular slices. On the basis of the force and moment equilibrium conditions of a typical triangular slice, the recurrence equation of the lateral force is established. Furthermore, the relationship between the failure surface inclination angle and the interslice force inclination angle is established by satisfying the Mohr–Coulomb criterion. An iterative procedure for calculating the lateral force of the triangular slices by changing the failure surface inclination in the transition zone is performed until the interslice force satisfies the stress condition of the transition zone boundary, resulting in a stress discontinuity line if the Rankine zone and the transition zone intersect and the intersection line satisfies the stress characteristics of stress discontinuity. Example studies are performed to verify the present method, which shows that the soil–wall interface friction has the most significant effect on stress discontinuity, and the location of the stress discontinuity line gradually approaches the backfill surface with an increase in retaining wall inclination.