A method has been used to simulate shear failure in reinforced concrete elements considering localization phenomenon. This paper is dedicated to the modeling of the shear band localization in context of large strain accumulation in a narrow band without substantially affecting the strain in the surrounding material. This phenomenon frequently occurs accompanying inelastic deformation and material acoustic tensor looses its positive definiteness. Furthermore, finite element method is used to simulate this phenomenon. The model, when used in finite element context, gives mesh-insensitive results regarding to the width and direction of the shear band.