In this paper, a new finite element method, named augmented finite element method (A-FEM) that can deal with arbitrary cracking in a continua without a priori knowledge of crack location and direction, is introduced. The very promising capability of A-FEM based numerical platform in addressing the critical issue of complex, multi-scale damage evolution in composite laminates have been demonstrated through simulations at structural level scale, sub-ply scale, and microscopic single-fiber scale. The potential of this high-fidelity numerical modeling method in serving as a key element in establishing virtual testing methodology for laminated composites has been highlighted. Further, the conceptual, experimental, and computational challenges associated with virtual testing are summarized and recent advances on systematic attempts to address these challenges have been discussed. The remaining major challenges related to virtual testing have been identified and strategies to answer these challenges outlined.