The aim of this work is to predict the expansion of the plastic zone and residual stresses in layers of stainless steel woven fiber-reinforced thermoplastic matrix composite laminated plates (( 0 /- 0 )2) with rectangu- lar hole. The elastic and elastic-plastic stresses are analyzed by using FEM by means of a developed computer program with FORTRAN 90. The laminated plates arranged in (( 0 /- 0 )2) configuration under uniform trans- verse loading are formed by stacking four composite layers bonded symmetrically or antisymmetrically. Loading is gradually increased from yield point of the plate as 0.0001 Mpa at each load step. The elastic, elastic-plastic and residual stress components and the expansion of the plastic zones are obtained according to the load steps, different orientation angles and rectangular hole dimensions under clamped and simply supported boundary conditions. Results showed that the maximum stress levels and the plastic zones appear the vicinity of the rec- tangular hole at the upper and lower layers.