Composites with a weak interface between the filler and matrix which are susceptible to interfacial crack formation are studied. A finite-element model is developed to predict the stres/strain behavior of particulate composites with an interfacial crack. This condition can be distinguished as a partially bonded inclusion. Another case arises when there is no bonding between the inclusion and the matrix. In this latter case the slip boundary condition is imposed on the section of the interface which remains closed. The states of stress and displacement fields are obtained for both cases. The location of any further deformation through crazing or shear band formation is identified as the crack tip. A completely unbonded inclusion with partial slip at a section of the interface reduces the concentration of the stress at the crack tip. Whereas this might lead to slightly higher strength, it decreases the load-transfer efficiency and stiffness of this type of composite.