This paper discusses the possibility of application of Performance-Based Design (PBD) procedure in analysis and design of segmental lining of tunnels. Interaction of lining with surrounding media, nonlinear behavior of media, as well as lining connections and influence of construction stages in the modeling of the system make this analysis too complicated. Therefore a simplified nonlinear approach to evaluate the interaction of lining and media may be useful to be applied. On the other hand there are similarities in concepts of convergence-confinement method with capacity-spectrum method in PBD. The ground convergence response to the excavation will provide a demand on the lining and can be compared with the lining capacity to reach the performance point. Using this concept, the PBD of segmental lining of tunnels is suggested to consider the nonlinear behavior of medium and lining connections. However, the non-uniform pressure around the lining needs some special considerations which have also been proposed. The results of the estimated deformations and lining internal forces are compared with numerical solution, using some examples. Good agreement of results shows the accuracy of the proposed method.