A practical example of applying two- to three-dimensional (2- to 3-D) global/local finite element analysis to laminated composites is presented. Cross-ply graphite/epoxy laminates of 0.1-in. (0.254-cm) thickness with central circular holes ranging from 1 to 6 in. (2.54 to 15.2 cm) in diameter, subjected to in-plane compression were analyzed. Guidelines for full 3-D finite element analysis and 2- to 3-D global/local analysis of interlaminar stresses at straight free edges of laminated composites are included. The larger holes were found to reduce substantially the interlaminar stresses at the straight free-edge in proximity to the hole. Three-dimensional stress results were obtained for thin laminates which require prohibitive computer resources for full 3-D analyses of comparative accuracy.