This article presents a methodology for predicting the stress–strain response and failure behavior of fiber composite laminates. First, a stress transfer method is proposed by using the concept of the state space equation. The generalized plane strain deformation is assumed in the model. The state space equation was derived by using Fourier series expansions in the width direction and the layer refinement technique through the thickness. Secondly, Christensen’s stress-based failure criteria are adopted to predict failure of individual plies. Finally, the applications of the methodology are shown by predicting the failure envelopes and stress–strain curves of the test cases provided by the organizers of the Second World-Wide Failure Exercise (WWFE-II).