A novel damage evolution model for unidirectional (UD) composites is established in this paper in the context of continuum damage mechanics (CDM). It addresses matrix cracking and it is to be applied along with the damage representation established previously. The concept of damage driving force is employed based on the Helmholtz free energy. It is shown that the damage driving force can be partitioned into three parts, resembling closely three conventional modes of fracture, respectively. A damage evolution law is derived accordingly based on the newly obtained expressions of the damage driving force. The fully rationalised Tsai-Wu criterion is employed in the model for predicting the initiation of matrix cracking damage and fibre failure, assisted with the rationalised maximum stress criterion for identifying the damage modes. A mechanism is introduced to describe the unloading behaviour as a part of the proposed model. The predictions were validated against experimental results, showing good agreement with the experiments and demonstrating the capability and effectiveness of the proposed model.