This study investigates shear zone development in a coarse-grained soil slope beneath a railway embankment under seismic action. Clarifying the dynamic stress and residual strain responses under different seismic exci-tations reveals the slope instability mechanism. A typical coarse-grained soil slope under construction of the Sichuan-Tibet Railway Railway was selected for large-scale shaking table model testing. The evolution of slope response parameters (dynamic displacement, acceleration, dynamic strain and residual strain, and dynamic earth pressure) was monitored. The seismic damage modes and resulting deformations of the embankment and slope were analysed. The evolution characteristics of a shear zone were described; the relationship among acceleration, dynamic stress, and dynamic strain was clarified; and the critical state of earthquake-induced slope instability was defined. The main conclusions are as follows: under seismic excitation, the slope slip surface forms mostly near the interface between the sand and breccia layers, and a weakness zone exists between the subgrade and slope surface. Under high-energy seismic excitation (i.e., PGA >= 0.4 g), positive peak acceleration is more suitable for assessing the elevation amplification effect. Considering the cumulative strain distribution contour maps, the growth characteristics in the dynamic stress peak area can describe the development of a shear slip zone. Acceleration amplification factors can reflect slope responsiveness, but the energy contained in the seismic waves determines deformation. When the ratio of dynamic to shear stress exceeds 2, the dynamic strain in the slope slip zone increases considerably with shear zone extension and slope instability. With increasing dynamic stress, the growth characteristics of residual strain exhibit stability, transition and failure states.