This paper describes work performed by Failure Analysis Associates, Inc. (FaAA) to develop capabilities for quantitative analysis and evaluation of parts containing defects. The work was conducted for Boeing Aerospace under the Astronautics Laboratory NDE Data Application Project (F04611-86-C-0080). In this project, FaAA used a finite element structural analysis code to predict the response of carbon-carbon involute rings that were intentionally fabricated with wrinkles and overstaged plies. Analytical techniques for modeling the effects of the defects were evaluated. The finite element analysis predictions compared favorably with data from hoop tension tests of the rings. A computer code was developed to use digital nondestructive evaluation (NDE) data automatically to define spatially varying material properties required by finite element analysis. The code provides a practical mechanism for automatically including the effects of defects in the analysis of actual hardware. The results of this effort demonstrate promising capabilities for the analysis of composite parts containing defects.