In abrasive waterjet machining (AWJM), the abrasive particle impinges the workpiece surface at high supersonic speed. As a result, high compressive impact stresses are developed in the impact area. Then these stresses quickly propagate inside the body of the abrasive particle leading to its fracture. This paper presents a dynamic simulation of the abrasive particle fracture using the powerful tool of the finite element method (FEM) in order to predict the behaviour of the particle during interaction with the workpiece surface. The new model takes into account AWJ dynamic loading conditions. The main objective is to develop an FE model which would enable to simulate AWJ performane without any cutting experiments. Deformations and stresses occurring in the abrasive particle material as a result of AWJ impact could be obtained. The results show that the abrasive particle is subject to severe fracture, due to high compressive flow stresses, as a result of AWJ impact and also indicate a good agreement with fragmented abrasive particles which are experimentally obtained in the literature.