The rotational–translational loess landslides are widely distributed in northwest China, usually posing threats to the surrounding residents and infrastructure. These loess landslides are characterized by the formation of multiple slip surfaces during the run-out process, and the mechanisms of this phenomenon in loess landslides have not been sufficiently investigated. Therefore, in this paper, we integrated the elastic–plastic strain softening constitutive law into the original DualSPHysics code to extend its application in simulating rotational–translational loess landslides. Two benchmark cases are studied to validate the model, the failure process of a cohesive soil slope without strain softening and that of a sensitive clay slope with strain softening. The results illustrate that our model can effectively predict large deformation. Then, the run-out process of the Caijiapo landslide in northwest China is analyzed by the modified model to investigate its failure mechanism. The results illustrate that the failure pattern of the Caijiapo loess landslide is very different from the typical retrogressive failure of clay landslides. The main slip surface of the Caijiapo landslide is controlled by the pre-existing structural plane. The second and third slip surfaces of this landslide are formed inside the sliding mass due to stress redistribution during the run-out process. Three scarps are formed in the landslide deposit because of the formation of multiple slip surfaces. This deposition morphology can be well reproduced by the SPH model taking strain softening into account, while the results using an SPH model without considering strain softening cannot capture this essential deformation characteristic.