Plasticity theory is extended to incorporate strain rate effects on the residual shear strength of clays. The clay is assumed to behave elastically before yielding and then in a perfectly plastic manner with no volume change during yielding. The Mohr-Coulomb failure criterion is used in the rate-dependent model in which the strain rate affects the mobilized effective friction angle of the material. During initial yielding and subsequent plastic deformation, the stress and strain states at a point will satisfy the rate-dependent yield function (loading function). When the effective plastic strain rate decreases to a threshold strain value, the loading surface moves, or collapses, to the static yield surface. A constant volume flow rule is used to calculate plastic deformation. The computed stress-strain relationship is formulated in two parts, namely a rate-independent part and a rate-dependent part. The rate-independent part is the same as that used in classical elastoplastic formulations, whereas the rate-dependent part is dependent on the current strain rate of the material. The use of the model is illustrated using a numerical example simulating a two-dimensional plane strain test.Key words: constitutive relationship, finite element, plasticity theory, pre-sheared clay, rate effects, residual strength.