This is a contribution to the exercise that aims to benchmark and validate the current continuum damage and fracture mechanics methodologies used for predicting the mechanical behaviour of fibre-reinforced plastic composites under complex loadings. The paper describes an analytical approach to predict the effect of intra- (matrix cracking and splitting) and inter-laminar (delamination) damage on the residual stiffness properties of the laminate, which can be used in the post-initial failure analysis, taking full account of damage mode interaction. The approach is based on a two-dimensional shear lag stress analysis and the equivalent constraint model of the damaged laminate with multiple damaged plies. The application of the approach to predicting degraded stiffness properties of a multidirectional laminate with multilayer intra- and inter-laminar damage is demonstrated for and cross-ply laminates made from a specific glass/epoxy system under in-plane uniaxial and biaxial loading damaged by transverse and longitudinal matrix cracks and crack-induced transverse and longitudinal delamination.