The accurate prediction of damage and delamination in composite automotive, aerospace, and marine structures under impact loading is addressed. The mechanisms that play an important role in the development of damage zone that eventually leads to interfacial fracture, and how the shape and size of the damage and delamination zone relates to the loading conditions and material constituents are studied. A micromechanics based damage model, a set of kinetic equations for the evolution of fracture and delamination, and a finite deformation composite shell theory are developed.