The unstable rock slope in the Laxiwa reservoir area of the Yellow River upstream, China, shows the signs of gravitational and water-impounding induced large deformations over an area of 1.15 × 105 m2. Slope movements have been measured daily at more than 560 observation points since 2009, when the reservoir was first impounded. At two of these points, an average daily movement of around 60–80 mm has ever been observed since the beginning of the impounding. Based on the observed deformations and the geology of the site, a fluid–solid coupling model was then adopted to investigate the existing rockslide activity to better understand the mechanism underlying the large deformations. The results from the field observation, kinematic analysis and numerical modeling indicate that the slope instability is dominated by the strong structurally controlled unstable rock mass. Based on an integrated overview of these analyses, a new toppling mode, i.e. the so-called ‘conjugate block’ mode, is proposed to explain the large deformation mechanism of the slope. The conjugate block is formed by a ‘dumping block’ and toppling blocks. The large deformation of the slope is dominated by (1) a toppling component and (2) a subsiding bilinear wedge induced by planar sliding along the deep-seated faults. Following a thorough numerical analysis, it is concluded that small collapses of rock blocks along the slope will be more frequent with the impounding process continuing and the water level fluctuating during the subsequent operation period. Based on a shear strength reduction method and field monitoring, four controlling faults are identified and the instability of the loose structure in the surface layer is analyzed and discussed. The factor of safety against the sliding failure along the deep seated fractures in the slope is 1.72, which reveals that (1) the collapse of the free-standing fractured blocks cannot be ruled out and the volume of the unstable blocks may be greater than 100,000 m3; (2) the collapse of the whole slope, i.e. with the volume being greater than 92 million m3, or a very large collapse involving several million m3, is considered to be of very low likelihood, unless there are extreme conditions, such as earthquakes and exceptionally heavy rain.