A natural circulation small modular reactor (NCSMR) is designed and the severe accident of the NCSMR was analyzed with MELCOR code in this work. The NCSMR is a 330 MWt light water reactor no reactor coolant pumps and no active safety injection systems similar to the design of NuScale reactor. A MELCOR code model was developed for the reactor. The MELCOR model shows consistent results in steady state operation with the design values. The NCSMR severe accident analyzed in this work was induced by the small break loss of coolant accident in the reactor pressure vessel and a crack in the containment pool wall. The decay heat removal system is assumed to fail for the main steam line break. The results indicated that the RPV pressure decreases quickly while the containment pressure increases followed by the opening of reactor vent valves. The core exposes and heat up with the coolant leakage and finally collapsed to the lower plenum, leading to the lower head breach. High temperature core corium quickly broke the relatively thin containment vessel wall, and was discharged to the containment pool floor, leading to the molten corium concrete interaction. The fission products release during the accident process was also analyzed. The severe accident sequence shows that the NCSMR has much longer time duration for the reactor vessel lower head failure to occur compared to conventional commercial nuclear power plant under severe accident conditions. The analysis results help identify appropriate accident management strategies and countermeasures for the potential extreme natural hazard induced severe accidents in NCSMR.