Failure prediction of laminated composites is performed by progressive failure analysis method. A modified form of Hashin’s failure criterion by Shokrieh is used to detect the failure, where a sudden degradation model is proposed to reduce engineering material constants. The numerical analysis of composite laminates is implemented in ANSYS Parametric Design Language (APDL) with commercial finite element codes ANSYS. The method can predict the initiation and propagation of local damage and response of laminated composite structures from initial loading and ultimate failure. The model has been validated by comparing numerical results with existing experimental results. And then failure analysis specimen fabricated from M40J/Ag80 and investigation on influence of stacking sequences and fiber orientations under in-plane compressive loading have been performed by the proposed model.