Although lateral phase change random access memory (PCRAM) has attracted a lot of interest due to its simpler fabrication process and lower current compared to ovonic unified memory (OUM), it faces a problem of poor lifetime. This paper studied relation between plastic deformation and the failure of PCRAM through both experiment and simulation. OUM and lateral PCRAM incorporating Ge2Sb2Te5 were fabricated and tested. The overwriting test showed that lifetime of OUM exceeded 106 while that of lateral PCRAM was only about 100. Using atomic force microscopy (AFM), it was found that the plastic deformation after 106 overwriting reached several tens of nm for lateral PCRAM while it was negligible for OUM. The thermo-mechanical simulation results confirmed the similar results on larger plastic deformation of lateral PCRAM than that of OUM during overwriting. As plastic deformation involves of atomic bonds breaking and reforming in phase change material, the plastic deformation may be one main reason for the failure of lateral PCRAM.