The mechanics of lateral crack propagation in a sharp‐indenter contact field are described. The driving force for fracture has its origin in the residual component of the elastic/plastic field, which becomes dominant as the indenter is unloaded. Expressions for equilibrium crack evolution are derived, with due allowance for the close proximity of crack plane and specimen free surface. As with the median/radial crack system considered in an earlier paper, the ratio hardness‐to‐modulus complements toughness in the fracture relations. The basic predictions of the theory are examined in terms of experimental measurements of lateral crack dimensions in materials with a wide range of mechanical properties. The prospects of predicting the extent of lateral fracture in other ceramics, and thence of establishing a base for analyzing such important practical properties as surface erosion, are discussed.