Abstract: This paper presents an exact structural static reanalysis method for locally modified structures. Through the introduction of structural rigid body motion eigenvectors, the general solution of displacements can be expressed prior to any assignment of boundary conditions. For locally modified structures, the structural compliance matrix can be adjusted quickly. This static reanalysis method can be used for structures with modifications on structural elements, boundary and loading conditions, either independently or in combination.This method is then applied to analyze the progressive failure of composite laminates. The classical laminated plate theory is used with linear triangular elements for in-plane deformation. Various failure criteria are considered for the evaluation of the successive ply failures. The reanalysis method is used to perform the stiffness analysis of the damaged laminate. By increasing gradually the applied load, the damage propagation and the ultimate strength are obtained. Several examples are studied with excellent correlation with available experimental, numerical and theoretical results.