The deformation mechanism of zinc oxide (ZnO) nanotube has been first examined by molecular dynamics. The result demonstrated that ZnO nanotubes relax it excess strain via the phase transformation from an armchair structure to a fourfold-coordinated structure, then to a zigzag structure, which is started by a slip deformation. In contrast to carbon, silicon carbide, and boron nitride nanotubes, they relax it local stress via the transformation of the Stone–Wales transformation. After yielding, the 8-4 dislocation loops are found and the numbers of 8-4 dislocation loops grow up, which relax the tensile strain at the necking region and leads the work hardening. Finally, the nanotube is broken down by crack deformation at the interface between different phases.