A clamped laminated cylindrical shell is presented to investigate nonlinear structural behavior involving geometrically nonlinear deformation. In the investigation, transverse matrix cracks are considered in the stiffness of the laminated cylindrical shell. Stiffness degradation is examined for several laminated angles and transverse crack density. Micro-mechanics theory on the composite material was used to derive the degraded stiffness of the laminated cylindrical shell due to the crack density. Iterative numerical scheme was developed to calculate the degraded composite stiffness which is a complicated relation with the crack density. A nonlinear finite element program was developed using 3-D degenerated shell element and the fist order shear deformation theory to consider the large deformation of the clamped laminated cylindrical shell. The updated Lagrangian method is used for nonlinear finite element analysis. Nonlinear structural responses of the laminated cylindrical shell were examined for various stacking sequences and crack density under transversely loaded pressure. Also, the effect of crack opening/closed was considered in the examination. Through this study, it is realized that the transverse matrix crack causes moderate stiffness reduction and affects the responses of the composite shell.