Using a nonrelativistic potential model, we calculate the cross section for the leading-order gluon dissociation of J/psi by including the full gluon wave function. We find that the resulting cross section as a function of gluon energy is reduced by about a factor of three at its maximum value compared to that calculated in the dipole approximation that is usually adopted in theoretical studies. The effect of the reduced cross section on the J/psi dissociation width at finite temperature is also discussed.