Based on the fact that the shear stress along anchorage segment is neither linearly nor uniformly distributed, the load transfer mechanism of the tension type anchor was studied and the mechanical characteristic of anchorage segment was analyzed. Shear stress-strain relationship of soil surrounding anchorage body was simplified into three-folding-lines model consisting of elastic phase, elasto-plastic phase and residual phase considering its softening eharaeteristic. Meanwhile, shear displacement method that has been extensively used in the analysis of pile foundation was introduced. Based on elasto-plastic theory, the distributions of displacement, shear stress and axial force along the anchorage segment of tension type anchor were obtained, and the formula for calculating the elastic limit load was also developed accordingly. Finally, an example was given to discuss the variation of stress and displacement in the anchorage segment with the loads exerted on the anchor, and a program was worked out to calculate the anchor maximum bearing capacity. The influence of some parameters on the anchor bearing capacity was discussed, and effective anchorage length was obtained simultaneously. The results show that the shear stress first increases and then decreases and finally trends to theresidual strength with increase of distance from bottom of the anchorage body, the displacement increases all the time with theincrease of distance from bottom of the anchorage body, and the increase of velocity gradually becomes greater.