E arly fatigue damage is assumed to correspond to the build-up of local plastic shear strain. The influence of strain-hardening and grain size on the early stage of fatigue damage of a polycrystal subjected to fluctuating stress is considered. The calculations are based on a micromechanics theory proposed recently by the authors. It is shown that the increase of the strain-hardening rate and/or the decrease of the grain size decreases the rate of early fatigue damage. In order to produce 100 per cent local plastic shear strain for a given number of loading cycles, the range of the alternating stress decreases with increasing amounts of mean stress. This result is shown to be rather insensitive to the rate of strain-hardening and is found to lie between the values predicted by Gerber's parabolic law and by the modified Goodman linear law for fatigue failure.