A finite element based degradation model was employed to study the effect of cracks on the relaxation moduli of linear viscoelastic laminates. In the current study, the relaxation moduli are expressed in terms of the elastic moduli, the fully relaxed moduli, and the relaxation functions. The degradation behavior of a viscoelastic lamina due to cracks was examined and compared with that of an elastic lamina. The study shows that the degradation behavior of a viscoelastic lamina can be predicted by that of an elastic lamina. The effect of other parameters such as adjacent lamina orientation on the properties of a cracked lamina in a viscoelastic analysis is found to be very similar to that for an elastic analysis. It was found that the cracks affect the elastic and fully relaxed moduli but do not affect the relaxation functions. The study also shows that the variation of the stress state of a viscoelastic laminate depends on the instantaneous crack density, not on the time-history of cracking. Based on the study, an efficient method has been developed for the progressive damage analysis of viscoelastic materials. The method allows accurate prediction of the stress state of a viscoelastic laminate utilizing the degradation information obtained from an elastic analysis. This method is very efficient and accurate.