The work aims to explore the drop simulation analysis method of the liquid crystal display package, and optimize and improve the auxiliary structure design according to the simulation analysis. A 3D model of the display package was created according to the packaging form of the LCD display, and the Ansys LS-DYNA dynamics module was used to simulate the Z-direction drop of the package. The material with the risk of failure was identified through the equivalent stress of the material, and the material structure was optimized and improved. Through drop simulation analysis, it was found that the position of the tray retaining wall bore a greater stress. The maximum equivalent stress was 67.9 MPa, which was greater than the yield strength of the material; the effective plastic strain was 0.046, which was greater than the corresponding plastic strain of the yield point of the material. The material had a certain risk of failure and loss. It was necessary to optimize the tray structure to increase its support strength. Through the comparison of drop simulation analysis and drop test, the reliability of the drop simulation method is verified, the better mechanical structure of tray is found through simulation analysis, and the rationality of the structure is verified through experiments.