The deterioration of rock mass in the Three Gorges reservoir area results from the coupled damage effects of macro-micro cracks and dry-wet cycles, and the coupled damage progression can be characterized by energy release rate. In this study, a series of dry-wet cycle uniaxial compression tests was conducted on fractured sandstone, and a method was developed for calculating macro-micro damage (DR) and energy release rates (YR) of fractured sandstone subjected to dry-wet cycles by considering energy release rate, dry-wet damage and macro-micro damage. Therewith, the damage mechanisms and complex microcrack propagation patterns of rocks were investigated. Research indicates that sandstone degradation after a limited cycle count primarily exhibits exsolution of internal fillers, progressing to grain skeleton alteration and erosion with increased cycles. Compared with conventional methods, the DR and YR methodologies exhibit heightened sensitivity to microcrack closure during compaction and abrupt energy release at the point of failure. Based on DR and YR, the failure process of fractured sandstone can be classified into six stages: stress adjustment (I), microcracks equal closure (II), nonlinear slow closure (III), low-speed extension (IV), rapid extension (V), and macroscopic main fracture emergence (VI). The abrupt change in damage energy release rate during stage V may serve as a reliable precursor for inducing failure. The stage-based classification may enhance traditional methods by tracking damage progression and accurately identifying rock failure precursors. The findings are expected to provide a scientific basis for understanding damage mechanisms and enabling early warning of reservoir-bank slope failure. (c) 2025 Institute of Rock and Soil Mechanics, Chinese Academy of Sciences. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/ 4.0/).