Based on the concept of continuum damage mechanics, an anisotropic damage model for single crystals under the theory of crystal plasticity is presented. Damage and inelastic deformations are incorporated in the proposed model which is developed within the framework of thermodynamics with internal state variables. The dependence of the plastic anisotropy on the damage evolution has been considered. The anisotropic damage is characterized kinematically here through a second‐order damage tensor which is physically based. The proposed model can successfully describe the interaction between the evolution of micro‐structure of single crystals such as lattice orientation and the hardness development of each slip system and the process of material degradation. The Newton–Raphson iterative scheme is used to integrate the constitutive equations that work directly with the evolution equations for the elastic deformation gradient. The consistent algorithmic tangent stiffness for the present algorithm is formulated. The prescribed algorithm together with the consistent algorithmic tangent stiffness has been implemented into the ABAQUS finite element code by using user subroutine. Using the loading processes with homogeneous deformations and simulation of the classical tensile test of a notched bar illustrate the basic aspects of the model described. Numerical simulations show the validation and performance of the present model and algorithm. Copyright © 2004 John Wiley & Sons, Ltd.