A method to analyze stress transfer in cross-ply laminates with transverse micro-cracks is presented. The governing equations of the problem are derived on the basis of the plane strain assumption and the two-dimensional equations of elasticity. By using Fourier series expansions, the governing equations are converted to a set of linear algebra equations system. The method takes into account the discontinuities of the series expansions at boundaries. The method is applied to obtain solutions, with which published results can be found for comparisons. Further parametric studies are carried out for cracked laminates with various geometric and material properties.