This paper presents results of a computational study focused on examining the role of manufacturing-induced voids in the initiation and growth of damage at the microstructural level in polymer matrix composites loaded in tension normal to fibers. The polymer deformation is described by an improved macromolecular constitutive model accounting for strain-rate-, pressure-, and temperature-sensitive yielding, isotropic hardening before peak yield, intrinsic postyield softening, and rapid anisotropic hardening at large strains. A new craze model that accounts for craze initiation, growth, and breakdown mechanisms is employed. An energy-based criterion is used for cavitation induced cracking that can lead to fiber/matrix debonding. The role of voids is clarified by conducting a comparative study of unit cells with and without voids. The effects of strain rate and temperature are investigated by a parametric study. The overall composite stress-strain response is also depicted to indicate manifestation of microlevel failure on macroscopic behavior.