Structural integrity assessment of reactor pressure vessels (RPVs) is essential for the safe operation of nuclear power plants. For RPVs in pressurized water reactors (PWRs), the assessment should be performed by considering neutron irradiation embrittlement and pressurized thermal shock (PTS) events. To assess the structural integrity of an RPV, a traditional method is usually employed by comparing fracture toughness of the RPV material with the stress intensity factor (KI) of a crack postulated near the RPV inner surface. When an underclad crack (i.e., a crack beneath the cladding of an RPV) is postulated, KI of this crack can be increased owing to the plasticity effect of cladding. This is because the yield stress of cladding is lower than that of base metal and the cladding may yield earlier than base metal. In this paper, detailed three-dimensional (3D) finite element analyses (FEAs) were performed in consideration of the plasticity effect of cladding for underclad cracks postulated in Japanese RPVs. Based on the 3D FEA results, a plasticity correction method was proposed on KI calculations of underclad cracks. In addition, the effects of RPV geometries and loading conditions were investigated using the proposed plasticity correction method. Moreover, the applicability of the proposed method to the case which considers the hardening effect of materials after neutron irradiation was also investigated. All of these results indicate that the proposed plasticity correction method can be used for KI calculations of underclad cracks and is applicable to structural integrity assessment of Japanese RPVs containing underclad cracks.