<p>Stability analysis of slope with cracks is crucial in geotechnical engineering. Traditional methods for evaluating the stability of cracked slopes frequently employ the linear Mohr–Coulomb (M-C) failure criterion with a tension cut-off that reduces tensile strength to zero, potentially underestimating the stability. This study introduces a modified nonlinear M-C failure criterion and the concept of a closed stress point, which differentiates between tension-shear and compression-shear stress zones. This criterion is combined with the limit equilibrium method to assess the slope stability. Various analyses are conducted to understand the impact of failure criteria on safety factors, crack locations, and depths, as well as closed stress point positions. The results show that the safety factors obtained from the linear M-C criterion with tension cut-off differ from those obtained using the modified nonlinear criterion, varying with slope height and angle. The safety factors calculated using the method with a tension cut-off are lower than those obtained with nonlinear methods. This underestimation is significant and cannot be ignored. Additionally, the cracks predicted by the linear criterion are typically deeper and nearer to the slope shoulder than those predicted by the nonlinear criterion. The proposed approach enables the explicit delineation of crack, tension-shear, and compression-shear failure domains, consequently improving the quantitative evaluation of stability of slope with cracks.</p>