The presence of defects in the structure requires noticeable attention and understanding of fracture mechanisms in brittle materials has to be established. Defects in the form of holes, macro- and micro-cracks are the main interest of this paper. This work investigates the dual role of holes and micro-crack arrays on toughening and degradation mechanisms in concrete structures. An ordinary state-based peridynamics (PD) model is utilized to analyse the fracture problem at the micro-level. The application of PD shows its advantage in crack-hole, macro- and micro-crack interaction problems since PD can accurately predict the contribution of defects on structural behaviour. The study of the three-point bending problem with five types of holes existing in the structure showed the crack arrest phenomena at the hole boundary and the “attraction” of the crack to propagate towards the hole. For the study of the macro- and micro-cracks interaction problem, various cases of the micro-crack distribution and inclination angles are considered and validated with analytical studies. The PD quasi-static simulations show good agreement with analytical solutions. Moreover, PD dynamic solutions show the capability of PD to capture complex crack propagation paths. It is observed that the presence of micro-cracks and holes ahead of the main crack can suppress its further propagation as well as have an influence on the crack propagation direction. The numerical results demonstrate the efficiency of the PD modelling of multiple crack interaction problems.