To determine strength allowables for cylinders–such as aircraft fuselages–made of fiber-matrix composites, practical analytical tools are needed to determine damage extent and residual strength around cutouts. A higher-order shell theory is used to analyze compressive and tensile loads on a graphite/epoxy laminated cylinder containing a square cutout. Failure in the fiber, matrix, or lamination is determinated by the Hashin failure criterion and modeled by reducing the appropriate stiffness terms. This results in a redistribution of stress, leading to further failure. Under fatigue loads, graphite/epoxy will lose stiffness as cycles increase. To model this effect of cyclic loading, the stiffness matrix is further reduced at the beginning of each cycle. Therefore, the static analysis can be used to predict damage under fatigue loading by representing several thousand fatigue cycles in a single computational cycle. In compression loading, the reduction in stiffness ultimately leads to geometric instability, or collapse. In tension, the reduction is stiffness–to account for fatigue–increases the displacements, but not the stress. Therefore, a strain-based criterion is added to induce macromechanical failure from the cyclic loading. The material damage propagates until failure of the curved panel occurs. The objective is not to model the micromechanical failure in the structure, but rather to determine the damage extent, stress redistribution, and residual strength of composite cylinders under fatigue loading.