The improved peridynamics is introduced to analyze the stability of surrounding rock in tunnel excavation process. By introducing short-range repulsive force into peridynamic equation of motion, the tensile and compression failure characteristics of rock materials is simulated. In order to simulate the process of tunnel excavation, the material point dormancy method is proposed in this paper. By simulating the distribution characteristics of excavation damage zone (EDZ) during the excavation of a circular tunnel with high stress difference, the relationship between the distribution position of EDZ and the direction of maximum principal stress is revealed. The v-shaped notches developed on the tunnel periphery at the direction of perpendicular to the maximum principal stress. The predicted EDZ distribution characteristics is consistent with the results of previous studies. And the displacement field of surrounding rock after tunnel excavation is also in good agreement with FEM simulation result. The simulation results show that this method not only has good stability, but also has high computational efficiency. By analyzing the deformation, damage and failure characteristics of surrounding rock under different buried depths, different lateral pressure coefficients, different excavation methods and different section shapes, the evolution process of rock instability caused by tunnel excavation and unloading is revealed. Which provides reference for the design and optimization of surrounding rock support scheme in deep buried tunnels.