Understanding of desiccation-induced cracking in soil has improved over the last 20–30 years through experimental studies, but progress in predictive modelling of desiccation cracking has been limited. The heterogeneous structure of soils and the multi-physics nature of the phenomenon, involving emergence and propagation of discontinuities, make the mathematical description and analysis a challenging task. The authors present a non-local hydro-mechanical model for soil desiccation cracking capable of predicting crack initiation and growth. The model is based on peridynamics (PD) theory. Attempts to model soil desiccation cracking by PD are limited to a purely mechanical description of the process that involves calibration of the parameters. In contrast, the model presented in this paper describes soil desiccation cracking as a hydro-mechanical problem, where moisture flow and deformation are coupled. This allows for investigating and explaining the mechanisms controlling the initiation and propagation of discontinuities. The model is applied and tested against two sets of experimental data to explain the typical features of drying-induced cracking of clays. The validations use experimental parameters (Young's modulus, water retention characteristics) and avoid calibrations to test the accuracy of the model. The correlations between the shrinkage of soil clay, changes in displacement fields and crack growth are demonstrated. Crack initiation, propagation and ultimate crack patterns simulated by the model are found to be in very good agreement with experimental observations. The results show that the model can capture realistically key hydraulic, mechanical and geometry effects on clay desiccation cracking.