The evolution and mechanism of ground collapse caused by underground water pipeline leakage have become increasingly significant as more urban areas experience collapses. Based on the principle of similarity, and considering the engineering context of road collapses in Anqing City, Anhui Province, this study designed a 3 m × 2 m × 2 m rupture-collapse model test device. Digital Image Correlation (DIC) technology was employed to investigate the erosion process and collapse mechanisms caused by underground pipeline leakage. The results indicate that groundwater seepage provides the driving force for collapses, combined with the migration space provided by defects, collectively triggering the collapses. When groundwater seepage is minimal, the cohesive forces between soil particles maintain soil stability. As groundwater seepage increases, the soil particle framework is eroded, leading to soil structure destabilization and collapse initiation. The depth of collapse significantly influences stress evolution: stress evolution intensity beneath and above the collapse pit is positively correlated with the distance from the collapse pit bottom, but negatively correlated with the distance from the defect. The research provides insights for the early warning and management of ground collapse.