The development of fatigue damage in (0/90) sub SCS-6/TI-15-3 laminates containing center holes was studied. Stress levels required for crack initiation in the matrix were predicted using an effective strain parameter and compared to experimental results. Damage progression was monitored at various stages of fatigue loading. In general, a saturated state of damage consisting of matrix cracks and fiber matrix debonding was obtained which reduced the composite modulus. Matrix cracks were bridged by the 0 deg fibers. The fatigue limit (stress causing catastrophic fracture of the laminates) was also determined. The static and post fatigue residual strengths were accurately predicted using a three dimensional elastic-plastic finite element analysis. The matrix damage that occurred during fatigue loading significantly reduced the notched strength.