This study investigates tensile deformation, damage analysis, and the effect of microtexture on a 10 % vol. zirconia particle-reinforced TRIP steel composite. In situ tensile tests and simulations were conducted, with sequential SEM images captured during tensile loading tests and electron backscatter diffraction (EBSD) providing initial crystal orientation data. SEM images were utilized in digital image correlation (DIC) analysis to calculate the local plastic strain distribution using VEDDAC software. Initial micrographs and EBSD data were transformed into geometry files for simulations, employing crystal plasticity with a dislocation density-based model and a newly proposed phase field approach-based ductile-brittle damage criterion for both austenite and ceramic particles. MATLAB's image processing functions were used to compare and validate experimentally observed damage instances with simulation predictions. The effect of microtexture combined with various physical quantities was explored using MTEX. The results show that the simulations accurately predict strain concentration around ceramic particles, with a higher strain observed in the middle region compared to the DIC observations. The simulated strain in the austenitic matrix is found to be 1.4 times higher than the DIC measurements. Quantitative analysis of damage pixels reveals that the proposed critical plastic strain value aligns closely with experimental results, showing an error of - 0.25 % compared to 1.121 % for a smaller strain case. This comprehensive analysis provides insight into the effect of microstructural attributes on material performance and behavior under tensile deformation, leading to a validated microstructural-informed damage-inclusive crystal plasticity model.