This study is to investigate the stiffness degradation of a composite laminated panel including transverse matrix cracks subjected to bending and twisting moments. Micromechanics theory on the composite material is derived by introducing crack density. Iterative numerical scheme is developed to calculate the degraded composite stiffness which has nonlinear relation due to the crack density. The finite element method is used for structural analysis of the composite panel. Structural responses of the composite panel are examined for various laminated angles and crack density under the bending and twisting moments. Also, the effect of crack opening and closing is considered in the examination. It is realized that the matrix cracks may cause severe stiffness reduction and should be considered in the composite laminated panel.