The present contribution is concerned with finite element modeling of NATM tunneling with special emphasis on adequately modeling the highly nonlinear mechanical behavior of rock mass up to failure. Based on a numerical study of deep tunneling, derived from a stretch of the Brenner Base Tunnel, the mechanical behavior predicted by the novel gradient-enhanced rock damage-plasticity model will be assessed in large-scale, three-dimensional finite element simulations and compared with the one on the basis of a commonly employed linear elastic-perfectly plastic rock model. A significant difference in the mechanical response of the tunnel structure is obtained: employing the rock damage-plasticity model reveals a substantial increase of the displacements in the vicinity of the tunnel due to softening rock mass behavior. Consequently, higher loads are imposed onto the tunnel support, increasing the required load-bearing capacity.