A three-dimensional analytical model based on the principle of minimum potential energy is developed and applied to determine the stress state in a discrete fiber/matrix composite cylinder subjected to axial tensile loading in the fiber direction and containing a non-axisymmetric transverse matrix crack and an interface debond. The friction over the debonded interface is incorporated into the analysis. The strain energy release rates associated with the matrix crack and the interface debonding under the combination of the applied load and the interface frictional force are computed. The strain energy release rate criterion has been employed to evaluate the critical applied loads for the two fracture modes and to assess the competition between propagation of a matrix crack and growth of interface debonding. A parametric study has been carried out. The computed results show that the interface friction plays an important role in the failure of brittle matrix composites.