This paper presents the original incorporation of the smeared crack band (SCB) damage model within the full layerwise theory (FLWT) framework, to contribute to the increase of the computational efficiency of the progressive failure analysis of open-hole laminar composites loaded in tension, simultaneously preserving the accuracy of the conventional 3D finite element models. The developed FLWT-SCB prediction model was implemented into an original FLWTFEM framework allowing for the accurate 3D stress fields and excellent visualisation capacity. The response of damaged lamina, in both fiber and matrix directions, was described by distinct bilinear strain-softening curves. The mesh dependency problem was minimized by scaling the fracture energy using a characteristic element length. Both the failure initiation and failure modes were determined using the Hashin failure criterion. To verify the model effectiveness, the obtained results were compared against the experimental and benchmark data from the literature. Mesh dependency was analysed to confirm the benefits of suggested model, as well. The obtained results agreed with the experimental ones and those from the literature. According to the numerical results, FLWT-SCB allows for coarser meshes than those used in the standard finite element models, leading to improved computational efficiency without compromising the accuracy. The model also demonstrated the weak dependency between the size of the structure and the mesh. The advantages of using FLWT-SCB damage model in achieving significant improvements in computational efficiency are highlighted.