In cross-ply laminates under loading, multiple intralaminar (transverse) cracking in the 90-layers causes laminate stiffness reduction which can be predicted by analytical models studying average of the stress perturbation between transverse cracks. The commonly used analytical models such as shear-lag type or variational-type models assume that stress in damaged 90-layers does not depend on the laminate thickness coordinate. But with increase in crack density, the stress perturbations created by transverse cracks start to interact, generating high stress gradients in through-the-thickness direction in the 90-layers. Location of a new crack and features of its propagation in a high stress gradient region between two cracks in a cross-ply laminate are analyzed in this paper. FEM is used to calculate stress distribution between two cracks. The location of the next crack and its initial orientation is found using principal stresses and orientation of principal axes. Most often these cracks are initiated at ply interface in the middle between already existing cracks. Their propagation across the layer thickness is analyzed using energy release rate based criterion. It is shown that at very high crack density the crack propagation across the layer thickness is unstable in the beginning, but it is stopped when approaching the middle of the layer where the crack opening becomes zero. Presence of local delaminations at the tips of existing cracks changes the energy release rate for propagation of new transverse cracks.