A systematic classification of the effects of transverse cracking on the stress-strain response of composite laminates is presented. Stiffness reductions resulting from transverse cracking in glass/epoxy and graphite/epoxy laminates from crack initiation to crack saturation are predicted using the stiffness-damage relationships developed by the author in a previous work. Good agreement with the experimental results is found. An assessment of the ply discount method for predicting stiffness reductions at crack saturation is also made.