In this paper, Voronoi cell finite element method (VCFEM), introduced by Ghosh and coworkers (1993), is applied to describe the matrix-inclusion interfacial debonding for particulate reinforced composites. In proposed VCFEM, the damage initiation is simulated by partly debonding of the interface under the assumption of the critical normal stress law, and gradual matrix-inclusion separations are simulated with an interface remeshing method that a critical interfacial node at the crack tip is replaced by a node pairs along the debonded matrixinclusion interface and a more pair of nodes are needed to be added on the crack interface near the crack tip in order to better facilitate the free-traction boundary condition and the jumps of solution. The comparison of the results of proposed VCFEM and commercial finite element packages MARC and ABAQUS. Examples have been given for a single inclusion of gradually interfacial debonding and for a complex structure with 20 inclusions to describe the interfacial damage under plane stress conditions. Good agreements are obtained between the VCFEM and the general finite element method. It appears that this method is a more efficient way to deal with the interfacial damage of composite materials.