This paper presents an asymptotically compatible error bound for the finite element method (FEM) applied to a nonlocal diffusion model. The analysis covers two scenarios: meshes with and without shape regularity. For shape-regular meshes, the error is bounded by , where is the mesh size, is the nonlocal horizon, and is the order of the FEM basis. Without shape regularity, the bound becomes . In addition, we present an efficient implementation of the finite element method of nonlocal model. The direct implementation of the finite element method of nonlocal model requires computation of -dimensional integrals which are very expensive. For the nonlocal model with Gaussian kernel function, we can decouple the -dimensional integral to 2-dimensional integrals which reduce the computational cost tremendously. Numerical experiments verify the theoretical results and demonstrate the outstanding performance of the proposed numerical approach.

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