A robust finite element procedure for investigating damage evolution in short fiber reinforced polymeric composites under external loads is developed. This procedure is based on an axisymmetric unit cell composed of a fiber, surrounding interphase and bulk matrix. The hybrid interphase concept involves a degraded material phase, the extent of which is material and property dependent. One of the most significant features of the model relies on establishment of variable adhesion conditions between the primary material phases. The unit cell is discretized into linearly elastic elements for the fiber and the matrix and interface elements which allow debonding in the fiber-matrix interface. The interface elements fail according to critical stress and critical energy release rate criteria. The tension and shear aspects of failure are uncoupled, although the resulting nonlinear problem is solved implicitly utilizing quasi-static incremental loading conditions. Final failure resulting from saturation and breakage is modeled by the vanishing interface element technique. Details of the propagation of interface cracks and the initiation of debonds are also observed and discussed for various shapes of fiber end. Numerical results reveal an intense effect of the fiber-end geometry on the initial fiber-matrix de-cohesion. The present finite element procedures can generate meaningful results in the analysis of fiber-reinforced composites.