In this paper, a novel phase field (PF) model for fracture is developed in the framework of strain gradient elasticity. The strain energy decomposition methods initially proposed for linear elastic fracture problems are extended to the gradient elasticity situation. The PF model is numerically implemented through Abaqus subroutine UEL (user defined element) with nine-node quatrilateral C1-continous element. The finite element implementation is validated by studying the stress field near the static crack tip. When the length-scale parameter of the gradient elasticity is zero, the stress field is consistent with the analytical solution predicted by linear elastic fracture mechanics (LEFM). For non-zero length-scale parameters, the Cauchy stress at the crack tip is found to be non-singular and the numerical results exhibit less mesh sensitivity in the crack tip region compared with the linear elastic case. After that, four different strain energy decomposition methods (Method I-IV) are compared and discussed by studying Mode I fracture behavior under tensile load. It is found that Method I can properly characterize the toughening effect of gradient elasticity. Based on Method I, the influences of the fracture length-scale parameter lc and the strain gradient length-scale parameter l on the characteristics of the smeared crack model and the load–displacement curves are systematically discussed. The specimen size effect of Mode I crack propagation is also investigated. It is found that the length-scale parameter l has a larger influence on the load–displacement curve as the specimen size decreases. Finally, crack propagation behavior in pure shear test, three point bending test and tensile test of a notched plate with hole is investigated. It is demonstrated that the proposed PF model can well predict the curvilinear crack propagation path and properly characterize the effect of gradient elasticity. Thus, the PF model developed in this paper can be applied to study complex fracture behaviors in the framework of gradient elasticity, where the effect of internal structure on the mechanical responses become significant.