With advancement of dry-air cooling technology, it has become feasible to use steel reticulated shell structures in design and construction of industrial cooling towers. Steel reticulated shell cooling towers (SRSCTs) with light weight, high strength, and rapid construction have development potential. Wind-induced collapse accidents in cooling towers frequently occur, characterized by pronounced nonlinear behavior involving significant deformation and material failure. Nevertheless, current stability and collapse analyses of cooling towers based on linear theory and elastic deformation are inadequate and unsafe. Thus, the wind-resistant stability of SRSCTs must be evaluated considering their inherent high flexibility and low damping levels. Considering a 220 m high hyperbolic SRSCT as a case study, a wind-induced collapse FEM simulation and analysis were performed. The average and fluctuating wind loads were measured in a reduced-scale model during wind tunnel tests and used as the time-variant wind pressure in a structural finite-element model. The dynamic performance and buckling collapse analyses of the cooling tower were conducted considering geometric and material nonlinearities. The entire wind-induced failure process of the SRSCT in extreme winds was systematically investigated. The weaknesses in the structural stiffness and the failure process were quantified, with five failure stages and four failure modes. The failure stages included linear elasticity, local member failure, local regional failure, overall structural failure, and collapse. The failure modes included circumferential plastic buckling zone failure, windward buckling failure of the shell, crosswind failure of the stiffening ring (hinged curved-beam mechanism), and windward failure of the stiffening ring (triangular arch-like mechanism). This study confirms that development of plastic buckling zones and formation of plastic hinges, considering geometric and material nonlinearity, are the dominant factor in wind-induced failure and collapse of SRSCTs.