Plane SH-wave propagation in periodically layered elastic composites with a damaged layer is investigated. Two different models are developed to approximate the damaged layer, namely, a periodic array of cracks and continuously distributed springs in the layer. In the first model, the total wave field in the elastic stack of layers with cracks is described as a sum of incident wave field modeled by the transfer matrix method and the scattered wave field governed by an integral representation in terms of the crack-opening-displacements on the crack-faces. The integral equation derived from the boundary conditions on the crack-faces is solved numerically by a Galerkin method. By using Bloch–Floquet theorem the crack-opening-displacements for a periodic array of cracks are expressed by the crack-opening-displacement on a reference crack. In the spring model, the spring constant is estimated by the material properties and the crack density and the modified transfer matrix method is used to compute the wave reflection and transmission coefficients. Numerical results obtained by both models are presented and discussed. Special attention of the analysis is devoted to wave transmissions and reflections, band gaps, wave localization and resonance phenomena due to damages. The influences of the damage types (periodic cracks and stochastic cracks approximated by distributed springs) on the wave field pattern and the band gaps are analyzed.