Spider dragline silk is an optimal biomaterial with a combination of high tensile strength and high elasticity, and it has long been suggested to belong to liquid crystalline materials. However, a satisfactory liquid crystal description for the mechanical properties of the dragline is still missing. To solve the long existing problem, we generalized the Maier-Saupe theory of nematics to construct a liquid crystal model of the deformation mechanism of the dragline silk. We show that the remarkable elasticity of the dragline can be understood as the isotropic-nematic phase transition of the chain network with the beginning of the transition corresponding to the yield point. The calculated curve fits well with the measurements and the yield point is obtained self-consistently within our framework. The present theory can also qualitatively account for the drop of stress in supercontracted spider silk. All these comprehensive agreements between theory and experiments strongly indicate the dragline to belong to liquid crystal materials. (C) 2009 Elsevier B.V. All rights reserved.