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A periodic face-centred cuboidal cell model is provided to account for inter-particle interaction, and a particle-crack tip interaction model is developed to study the interaction between a blunting model I crack tip and the closest array of initially spherical rubber particles in an effective medium. Three-dimensional elastoplastic finite element analysis has been preformed to study the deformation and fracture behaviour of rubber-modified polycarbonates. The effective elastoplastic constitutive relation is derived by the method of homogenisation and local stress and strain distributions are obtained to explore the role of rubber cavitation in the toughening process at different stress triaxiality. 3D elastoplastic finite element results are compatible with experimental observations, that is, rubber particles can act as stress concentrators to initiate crazing or shear yielding in the matrix but they behave differently from voids at high triaxiality. Rubber cavitation plays an important role in the toughening process under high tensile triaxial stresses.