This paper is aimed at analyzing stresses and fiber-matrix interfacial debonding in three-dimensional composite microstructures. It incorporates a 3D cohesive zone interface model based element to simulate interfacial debonding in the commercial code ABAQUS. The validated element is used to examine the potential debonding response in the presence of fiber–fiber interactions. A two-fiber model with unidirectional fibers is constructed and the effect of relative fiber spacing and volume fraction on the stress distribution in the matrix is studied. In addition, the effect of fiber orientation and spacing on the nature of initiation and propagation of interfacial debonding is studied in a two-fiber model. These results are expected to be helpful in formulating future studies treating optimal fiber orientations and payoff in controlling fiber spacing and alignment.