In this paper, a comprehensive continuous Cosserat rod model is developed to study the dynamics of a drill-string. The model presents the following features: (1) it can simulate the 3-D dynamics of the system, including lateral, axial and torsional motion; (2) it includes damping effects by adopting a Kelvin–Voigt material; (3) it uses a velocity-independent bit-rock interaction formulation in which the forces and torques at the bit are obtained by considering the dynamics of the cutting blades and the evolution of the soil profile, which is simulated with the help of an advection equation; (4) lateral contact is also included. In this paper, two application cases are analysed. The first one deals with a vertical borehole. It includes four simulations that are used to further investigate the hypothesis that low-dimensional lumped formulations are not able to capture the dynamics of a drill-string and, while doing so, evaluate the effect of the damping in the system’s response. The predictions are compared with those given by two other models: the first one considers a 2-degrees-of-freedom (DOF) formulation, with 1-axial and 1-torsional DOF; the second one is a semi-discrete approach, with 1 DOF for the axial dynamics and a continuous formulation for the torsional one. Divergences between the predictions are found, associated with the presence of higher frequencies in the signals obtained with the Cosserat model, which reassures the hypothesis that the new continuous approach can capture aspects of the dynamics that cannot be modelled with low-dimensional representations. The efficiency of the drilling is also assessed for the simulations obtained with the new model. The highest performance was observed in those simulations where only axial oscillations occurred, while a performance drop was seen when those vibrations were accompanied by torsional stick–slip, suggesting that an optimum damping value associated with the best drilling performance could be found, were damping controllable. Finally, the second application case is used to illustrate the full potential of the new model to tackle the 3-D lateral, axial, and torsional dynamics in a curved borehole.