A modal strain based damage index is proposed to investigate the damage effects of discrete delaminations in a laminated composite structure. The Fermi-Dirac distribution function is incorporated with an improved layerwise laminate theory to model smooth transition of the displacement and the strain fields at the delaminated interfaces. Modal analysis is conducted to investigate dynamic effects of delamination in a laminated structure and to obtain modal strains. The damage index is calculated based on fundamental modal strains of laminated structures. The damage effects of laminated structures are investigated using arbitrary size, number, location and boundary conditions of discrete delaminations.