Many geological engineering hazards are closely related to the dynamic mechanical behaviors of rock materials. However, the dynamic mechanical behaviors of phyllite are less studied. In this study, we have carried out a series of triaxial cyclic tests on dry and water‐saturated phyllite by employing the MTS 815 servohydraulic testing system and AE testing equipment to reveal the mechanical behavior, energy release, and crack distribution characteristics of phyllite. Results show that phyllite is a water‐sensitive rock. Water and cyclic loading substantially affect the compressive strength, crack damage stress, deformation parameters, dilatancy, energy release, and crack distribution characteristics of phyllite. Furthermore, based on the dissipated energy, a new damage variable for phyllite is established. The critical damage variable for phyllite is approximately 0.80; this variable can be used as an index to predict the failure of phyllite. The water saturation effect of phyllite is very obvious; that is, it results in the weakness of mechanical properties of phyllite and changes the AE energy release and crack distribution characteristics of phyllite. This research can provide guidance for engineering construction and disaster prevention and control.