A model of contact damage accumulation from cyclic loading with spheres and ensuing strength degradation in relatively tough, heterogeneous ceramics is developed. The damage takes the form of a quasi-plastic zone beneath the contact, consisting of an array of closed frictional shear faults with attendant "wing" microcracks at their ends. Contact fatigue takes place by attrition of the frictional resistance at the sliding fault interfaces, in accordance,vith an empirical degradation law, allowing the microcracks to extend. At large numbers of cycles or loads the microcracks coalesce, ultimately into radial cracks. Fracture mechanics relations for the strength degradation as a function of number of cycles and contact load are derived. Indentation-strength data from two well-studied coarse-grain quasi-plastic ceramics, a micaceous glass-ceramic and a silicon nitride, are used to evaluate the model. Comparative tests in static and cyclic contact loading confirm a dominant mechanical component in the fatigue. At the same time, the presence of water is shown to enhance the fatigue. The model accounts for the broader trends in the strength degradation data, and paves the way for consideration of key variables in microstructural design for optimum fatigue resistance,