This paper presents an original finite element (FE) model that integrates the smeared crack band (SCB) approach and full layerwise plate theory (FLWT). The model enhances the computational efficiency of progressive failure analysis (PFA) of laminar composites in compression, by utilizing the layerwise approach which reduces a 3D model to a 2D one. The model distributes damage throughout the FE domain, with fracture mechanisms represented by material stiffness degradation controlled by damage variables (based on equivalent strains specifically defined for each failure mode). Mesh dependency issues are addressed by scaling fracture energy using a characteristic element length, and failure initiation and modes are determined using the 3D Hashin failure criterion. Accurately describing lamina response in fiber direction under compression requires linear-brittle softening with a stress plateau. The study showed that a model considering 30 % of residual stress accurately predicts maximum stress regardless of mesh refinement, demonstrating results’ minor dependence from the selected element size. The model accuracy has been confirmed by comparing the obtained results against experimental and benchmark data from the literature. The size effect study demonstrated a decrease in maximum stress of the open-hole laminates in compression with increasing specimen in-plane size. This trend is consistent with experimental and reference numerical observations, confirming the model accuracy and applicability even for relatively coarse meshes. Therefore, computational efficiency is improved, with preserved accuracy of conventional solid finite element models.