Seismic modeling of massive structures requires special caution, as wave propagation effects significantly affect the responses. This becomes more crucial when the path-dependent behavior of the material is considered. The coexistence of these conditions renders numerical earthquake analysis of concrete dams challenging. Herein, a finite element model for a comprehensive nonlinear seismic simulation of concrete gravity dams, including realistic soil–structure interactions, is introduced. A semi-infinite medium is formulated based on the domain reduction method in conjunction with standard viscous boundaries. Accurate representation of radiation damping in a half-space medium and wave propagation effects in a massed foundation are verified using an analytical solution of vertically propagating shear waves in a viscoelastic half-space domain. A rigorous nonlinear finite element model requires a precise description of the material response. Hence, a microplane-based anisotropic damage–plastic model of concrete is formulated to reproduce irreversible deformations and tensorial degeneration of concrete in a coupled and rate-dependent manner. Finally, the Koyna concrete gravity dam is analyzed based on different assumptions of foundation, concrete response, and reservoir conditions. Comparison between responses obtained based on conventional assumptions with the results of the presented comprehensive model indicates the significance of considering radiation damping and employing a rigorous constitutive material model, which is pursued for the presented model.