The discrete damage modeling method is extended for progressive failure analysis in laminated composites under fatigue loading. Discrete damage modeling uses the regularized extended finite element method for the simulation of matrix cracking at initially unknown locations and directions independent of the mesh orientation. A material history variable in each integration point is introduced and updated after each loading increment, corresponding to certain load amplitude and number of cycles. The accumulation of the material history variable is governed by Palmgren-Miner’s rule. Cohesive zones associated with mesh-independent cracks are inserted when the material history parameter reaches the value of 1. Cohesive zone model consistently describing crack initiation and propagation under fatigue loading without any assumption of initial crack size is proposed. The fatigue properties required for matrix failure prediction include shear and tensile S-N curves as well as Mode I and II Paris law parameters. Tensile fiber failure is assumed unaffected by fatigue. All input data required for model application are directly measured by ASTM tests except tensile fiber scaling parameter and compression fiber failure fracture toughness, which were taken from literature sources. The model contains no internal calibration parameters. Fatigue damage extent, stiffness degradation and residual tensile and compressive strength of IM7/977-3 laminates have been evaluated. Three different layups, [0/45/90/-45]2S, [30/60/90/-60/-30]2S and [60/0/-60]3S, were modeled and tested. The predictions captured most experimental trends and showed good agreement with X-ray CT damage assessment; however, significant further work is required to develop reliable methodology for quantitative composite durability prediction.