Despite the increased applications of the composite materials in aerospace due to their exceptional physical and mechanical properties, the machining of composites remains a challenge. Fibre reinforced laminated composites are prone to different damages during machining process such as delamination, fibre pull-out, microcracks, thermal damages. Optimization of the drilling process parameters can reduces the probability of these damages. In the current research, a 3D finite element (FE) model is developed of the process of drilling in the carbon fibre reinforced composite (CFC). The FE model is used to investigate the effects of cutting speed and feed rate on thrust force, torque and delamination in the drilling of carbon fiber reinforced laminated composite. A mesoscale FE model taking into account of the different oriented plies and interfaces has been proposed to predict different damage modes in the plies and delamination. For validation purposes, experimental drilling tests have been performed and compared to the results of the finite element analysis. Using Matlab a digital image analysis code has been developed to assess the delamination factor produced in CFC as a result of drilling.