This paper addresses details of wave load nonlinearity effect on stress RAO and damage ratio using component stochastic fatigue analysis. Traditional spectral fatigue analysis for ship structure is based on linear theory; however, there are a number of nonlinearity sources. Especially loading nonlinearity, such as hydrodynamic pressure applying to ship side and gravity changes due to roll and pitch motion, is thought to critically violate the linearity assumption of spectral fatigue analysis, which involves stress RAO as linear parameter. The main focus is placed on how to idealize complicated characteristics of loading nonlinearity and how to implement the nonlinear bias to linear spectral fatigue analysis.