Fiber-reinforced plastic (FRP) composites are subjected to micro-level defects such as fiber-matrix debond and/or matrix cracks after a period of their service due to the increasing brittleness of matrix material. Prediction of the degraded elastic properties of a lamina through micromechanical studies by incorporating micro-level defects gives an idea of the health condition of such structures. Due to the limitations of classical mathematical approaches in solving complex structures, numerical mathematical methods like the finite element method (FEM) can be employed. The present investigation deals with the micromechanical analysis of Glass fiber-reinforced plastic (GFRP) composite with micro-level defects to predict some of the elastic properties. The composite is idealized as an array of square unit cells, and the micromechanical behavior of one such unit cell is simulated in ANSYS software using the three-dimensional finite element method to predict Young’s moduli and Poisson’s ratios in principal material directions. The converged finite element solution for longitudinal modulus is validated by the rule of mixtures and the other properties using the Maxwell–Betti reciprocal theorem. Variations of Young’s moduli and Poisson’s ratios due to an incremental internal failure of composite such as low-level, medium-level, and high-level defects at an expected range of fiber volume fractions (50% - 60%) are evaluated and estimated the percentage degradation with respect to a corresponding defect-free composite.