Blade crack is one of the main causes of aero-engine failure, resulting in catastrophic accidents. At present, most of the research on dynamic characteristics of cracked blades is conducted based on acceleration response and displacement response and rarely based on dynamic stress response. To simulate the evolving stress state of the cracked rectangular blade (CRB) during the crack propagation, a dynamic model of the CRB is established by shell elements considering the crack-induced breathing effect simulated by the pseudo-contact spring, and a new surface stress calculation method is proposed by linear interpolation based on stress at Gauss integral points within elements. Based on the intact blade, the proposed modeling method and stress calculation method are verified by the measured natural frequencies and dynamic stress in resonance, respectively. Finally, a comparative analysis of the dynamic stress at the crack tip and the root of the CRB is conducted between simulation and experiment at different stages of crack propagation. The results show that (1) the maximum error of the dynamic stress amplitude between simulation and experiment is less than 15% at the root and crack tip of the CRB. (2) The root stress first increases slowly and then remains roughly constant as the crack propagates, while the stress at the crack tip exhibits a linear increase.