Red clay is widely used in engineering projects; it is characterized by high moisture content, high plasticity, large porosity, high strength and low compressibility. The engineering properties and deformation modelling of red clay in Guiyang differ significantly from those of ordinary soils. Consequently, it is essential to conduct a detailed study of the stress–strain relationship of red clay in order to obtain accurate engineering parameters. Hence, a series of unconsolidated undrained triaxial compression tests (UU) was conducted on red clay in Guiyang under different water contents and confining pressures. The test results show that the stress–strain curve of the clay undergoes three stages: elastic deformation, plastic yielding and stress reduction after failure. After reaching peak deviatoric stress, the deviatoric stress decreases gradually and stabilizes, showing noticeable strain-softening characteristics. The non-linear model from the Nanjing Hydraulic Research Institute (NHRI) was introduced for fitting and obtaining relevant parameters. Then, based on the FLAC 3D platform, numerical simulation was carried out on a standard soil sample. The research results show that the calculated curve from the non-linear model fits the experimental curve quite well, and the numerical test curve also agrees with it. This indicates that the non-linear model from NHRI can effectively reflect the strain-softening behaviour of clay and is highly applicable to Guiyang red clay.