Elastoplastic deformation in solids is often accompanied by strain localization, energy dissipation and, when localization further develops, crack initiation and propagation, posing challenges for local plasticity models and conventional fracture descriptions in naturally representing evolving displacement discontinuities and crack surfaces. This study develops a thermodynamically consistent nonlocal plasticity formulation for plastic evolution and its application to fracture problems, with particular emphasis on a kinematic hardening mechanism motivated by geometrically necessary dislocation (GND)-related incompatibility. Starting from nonlocal kinematics, nonlinear elastic and kinematic hardening force state constitutive relations are derived from the Saint-Venant–Kirchhoff (SVK) elastic energy and a hardening energy associated with incompatibility-induced internal deformation. The resulting hardening force state provides a nonlocal representation of the back stress and offers a physical basis for deriving thermodynamically consistent nonlocal yield functions. Based on Clausius–Duhem inequality, nonlocal J2 and Drucker–Prager (DP) yield criteria are derived with isotropic and kinematic hardening, leading to a unified thermodynamic formulation for ductile metals and pressure-dependent geomaterials. To integrate the resulting nonlinear system composed of the plastic flow rule, yield condition, and hardening evolution equations, a multivariable Newton return mapping (MNRM) algorithm with Wolfe line search is developed, in which the plastic multiplier and internal variables are solved simultaneously. A consistent tangent force state relation is further derived for the global equilibrium iteration. The proposed formulation is verified through benchmark problems involving monotonic and cyclic elastoplastic deformation, pressure-dependent plasticity, crack propagation and fatigue-like damage accumulation. The results show good agreement with the finite element (FEM) and experimental references, demonstrating the capability of the formulation to capture plastic strain localization, stress redistribution, hardening-induced path dependence, and fracture evolution within a unified nonlocal setting. This also offers a new perspective for simulating fatigue damage driven by plastic accumulation.