In this paper, based on the study of overburden failure law and field experiments at home and abroad, combined with the geological conditions of safe mining in Zhuxianzhuang mine field, using the theory and specification of tectonic geology, hydrological geology, engineering geology and mining science, the failure process of roof under mining disturbance is simulated step by step by using FLAC3D software, and the overburden mechanical analysis and evaluation model under coal mining is established to determine the movement law and stress change of caving zone and water flowing fractured zone of overburden. The FEFLOW numerical simulation technology is used to simulate the change of seepage field, predict the maximum hydraulic gradient of the damaged loose layer, analyze the distribution of seepage field and influencing factors of overburden in upper coal mining, analyze the factors and characteristics of overburden fracture failure in coal seam under fully mechanized caving mining, determine the height of water flowing fractured zone, and conduct in-depth study on the permeability failure evaluation of overburden and aquifer under coal mining.