The invention discloses a ground fracture test device and a method for simulating fracture dislocation and underground water change. The device comprises a test model box, a fixed platform and a movable platform, a dislocation adjusting mechanism is arranged at the bottom of the moving platform; a first bottom plate, a first waterproof plate and a first water stop plate are sequentially arranged on the fixed platform from bottom to top, a second bottom plate, a second waterproof plate and a second water stop plate are sequentially arranged on the movable platform from bottom to top, and the dislocation adjusting mechanism comprises a support, a jack and a sliding limiting component. The method comprises the following steps: 1, performing preparation before a test; 2, laying a model soil layer in the model box, burying a sensor and connecting the sensor with a data acquisition instrument; 3, injecting water into the model soil layer; 4, simulating soil layer fracture dislocation of thesimulation model; and 5, simulating underground water level change by model soil layer drainage. The device can simulate the development condition of the ground fissures under the conditions of fracture dislocation and underground water change, and is high in simulation accuracy.