Conventional composites are prone to catastrophic failure due to their low ductility, limiting their applications in critical engineering fields. Recently, a new generation of hybrid composites known as pseudo-ductile composites has been introduced, offering a significant improvement in failure behavior. These composites incorporate two distinct types of fibers, one with high failure strain and one with low failure strain, and exhibit a pseudo-ductile stress-strain response under tensile loads. In this study, a pseudo-ductile composite was fabricated using two types of carbon fibers with differing failure strains, arranged in seven layers. Mechanical testing including tensile and three-point bending tests were conducted to assess the failure behavior of this composite under various loading conditions. Additionally, a multi-scale finite element (FE) model was developed, integrating phase-field and continuum damage models. The model can successfully predict the composite’s stress-strain response and failure behavior considering the micro-scale fibers and matrix characteristics represented by representative volume element (RVE). RVEs of each composite ply were virtually tested under different loads, and the mechanical parameters, including elastic and failure constants, were extracted and incorporated into the macro-scale FE model. The experimental and numerical results obtained in this study provide valuable insights into the potential applications of pseudo-ductile composites in different engineering fields. The computational framework developed in this study can be used for optimizing the design of these composites to achieve superior mechanical performance for different engineering applications.