A crack emanating from an internal electrode or a conducting damage path in ferroelectric ceramic actuators is analyzed. The boundary of the domain switching zone near the edge of the internal electrode in a ceramic multilayer actuator is determined based on the nonlinear electric theory. The stress intensity factor induced by a ferroelectric domain switching under small scale conditions is numerically obtained for flaws of various sizes near the electrode edge. It is found that stress intensity factor near the crack tip depends on the material property of the electrical nonlinearity.