A representative element of the cross-ply laminate was modeled by the discrete element method (DEM) to analyze the stresses distribution. The DEM modeling results were compared with those from alternative approaches to validate the DEM model. The transverse cracking and interfacial delamination in [0 degrees(1)/90 degrees(3)](s) and [90 degrees(n)/0 degrees(1)](s) cross-ply laminates under transverse loading were analyzed by comparing crack densities as well as stiffness reduction with those from experiments and other numerical methods. It was found that the proposed DEM model can simultaneously capture the transverse cracking and delamination phenomenon, and can predict the variation of crack density and stiffness reduction accurately.