Experimental study on a stiffened fuselage panel with circumferential crack subjected to axial tension load was presented. The performance of the crack growth and characteristic of the residual strength for fuselage panel were investigated by damage tolerance experiment. Stress intensity factors (SIF) of experimental structure were analyzed by using ANSYS software. The crack propagation life was evaluated. The residual strength curves were calculated based on the linear elastic fracture mechanics and linear elastic fracture criterion modified by yield correction, respectively. The research indicates analysis results agree well with the crack propagation test data. The relative error is 6.3%, and the calculation accuracy satisfies the requirement of engineering. The estimation results using linear elastic fracture criterion modified by yield correction is more reasonable than using linear elastic fracture mechanics. The relative error is 2.6%.