Under the action of earthquakes, some key components of underground structures may be damaged, and the stability of the whole structure may deteriorate. Based on the traditional response displacement method, a new response analysis method of displacement time-history is proposed, and the characteristics and solution procedure of the method are introduced. Seismic response analysis of the Daikai subway station in Kobe, Japan, was conducted using the proposed method, which takes several aspects, e.g., the soil-structure interaction, material nonlinearity, geometry nonlinearity, coupling effect of horizontal shock and vertical shock, and the time-space effect of ground motion propagation, into consideration simultaneously. As the deformation and damage failure of the metro station obtained by the proposed method agreed well with actual results, the method is suitable for seismic analysis of underground structures.