This paper presents the micromechanical three-dimensional finite element models of the 2/2 twill weave T300 carbon/epoxy woven fabric composite laminates with drilled circular holes of different sizes. A fiber breakage failure criterion for predicting the ultimate tensile notched strength of fiber dominated composites is also proposed. It is found that the location of failure initiation for laminates with large hole size is different from those for laminates with smaller holes while the stress concentration may not occur at the notch roots for the fiber dominated laminates. Based on the uniaxial, shear and von Mises stress distributions in the yarn and matrix, the influence of hole-size on the stress distributions and stress concentration is discussed. Standard tensile tests with modifications are performed for this particular type of woven fabric composites. The apparent strain concentration factors and notched strengths determined by experiments are presented and the finite element models are verified by satisfactory correlation between prediction and experiment.