Experimental and theoretical investigations have been conducted to study the dependence of fiber fragmentation behavior on matrix yielding properties. The cured Epikote 828 resins with two types of curing agents have almost similar elastic moduli, but different tensile yield strengths. The interfacial chemistry between fiber and epoxy resin is unchanged due to the same constituent of the epoxy resin. The experimental results indicate that the fragmentation behavior of the fibers embedded in the matrix is significantly different for the tested glass fiber treated by gamma-glycidoxypropyltrimethoxysilane. The average fragment length decreased with increasing tensile yield strength of resin, which suggests that the interfacial shear strength determined in the fragmentation test should be different depending on the tensile yield strength of resin used. The important phenomenon observed is the transition of the micro-damage mode from matrix crack to interfacial debonding. An elastoplastic shear-lag model was used to calculate the shear stress and fiber tensile stress distributions considering different plastic behaviors of the matrices. The theoretical results indicate that the plastic behavior of the matrix has a large influence on stress transfer. Based on elastic and plastic properties of the matrix, the fiber fragmentation behavior in the matrix is predicted. Experimental and theoretical results are favorably compared.