The loess landslide along the contact between loess and Neogene red mudstone (NRM) is one of those that have occurred extensively and frequently in loess areas of China. To better understand the mechanism of this type of landslides, a distressed loess slope being subjected to deformation along the loess-NRM contact was comprehensively investigated through approaches of field monitoring and laboratory physical modeling. Field observation and physical modeling shows that the slope deformation will experience two distinct processes: 1) laterally retrogressive and vertically progressive propagation, which was initiated by falling of the slope head; and 2) retrogressively separate mass sliding along the weak basal zone of the loess-NRM contact with minor sliding along the paleosols within the loess. Shear failure of the loess-NRM contact may initiate in the middle section, followed by a progressive propagation towards the slope toe and inner slope. Analysis reveals that the deformation characteristics of the distressed slope are largely constrained by slope topography, the unique structure, physical and mechanical properties of loess and paleosols, and occurrence and nature of the loess-NRM contact. Rainfall has significantly influence on the deformation characteristics of the slope through its interaction with the loess and soil of the loess-NRM contact. Additionally, improper style and intensity of cutting on the slope greatly enhance and accelerate the deformation course of the slope.