Based on the real size and constrain of the wet clutch, the friction pair of temperature, stress fields coupling model, and the heat convection coefficient model are established. The transient thermal-structural coupling and the thermoelastic instability of the phenomenon of friction discs generated in overload tests are numerically simulated and analyzed with ANSYS/LS-DYNA. Additionally, the distribution of the hot spots in the circle direction and surface of the friction discs are revealed, the distribution of the stress and strain caused by the thermoelastic instability is analyzed and tested. The results show that hot spots and contact pressure are mutual promotion. The thermal expansion and stress concentration caused by temperature gradient lead to steel disc warp. The heat fading caused by the thermoelastic instability leads to steel disc failure.