Interfacial debonding and matrix cracking due to residual axial stresses have been analysed for unidirectional fibre-reinforced ceramic composites. The analytical solutions for the crack-opening displacement, the axial displacement of the composite due to interfacial debonding, and the critical residual axial stress for matrix cracking have been obtained. The solutions were then compared with those for tensile loading in the fibre direction. Three issues related to Part I, i.e. the effective fracture toughness of the composite, the critical loading stress for matrix cracking in the presence of residual stresses, and the debonded fibre length due to loading, were also addressed in the present study.