This paper describes a damage accumulation mechanism in cross-ply CFRP laminates [02/902]2S subjected to out-of-plane loading. Drop-weight impact and static indentation tests were carried out, and induced damage was observed by ultrasonic C-scan and an optical microscope. Both tests gave essentially the same results for damage modes, sizes, and load-deformation history. First, a crack occurred in the bottom 0° layer accompanying some delamination along the crack caused by bending stress. Then, transverse cracks occurred in the middle 90° layer with decreasing contact force between the specimen and the indenter. Measured local strains near the impact point showed that the stress state changed from a bending dominant state to an in-plane tensile dominant state. A cohesive interface element was used to simulate the propagation of multiple delaminations and transverse cracks under static indentation. Two types of analytical models are considered, one with multiple delaminations and the other with both multiple delaminations and transverse cracks. The damage obtained for the model with only multiple delaminations was quite different from that obtained from the experiment. However, the results obtained from the model with both delaminations and transverse cracks well explain the characteristics of the damage obtained in the experiment. The existence of the transverse cracks is essential to form the characteristic impact damage.