Composite materials have experienced continued growth in engineering applications due to their low weight, high strength, and customizable properties. However, their complex internal structure presents challenges for evaluating structural integrity and detecting damage, especially under mechanical loads. Non-destructive testing methods are essential for monitoring the structural health of composites without introducing damage to the material. Among various non-destructive testing techniques, Digital Image Correlation has emerged as an effective optical technique for measuring the deformation of composite materials without any contact. This study demonstrates the use of Augmented Lagrangian Digital Image Correlation to track strain evolution and predict failure location in composite specimens. In this study, a carbon fiber reinforced epoxy specimen was subjected to tensile testing, and its surface deformation was recorded at the same time using a Forward-Looking Infrared (FLIR) thermal camera. The camera captured detailed thermal images that reflected temperature changes associated with mechanical stress concentrations. The Augmented Lagrangian Digital Image Correlation technique was employed to analyze these images and quantify the evolving strain distributions across the specimen’s surface throughout the entire loading process. The results confirm that the method used can provide valuable insights into the deterioration of the composite specimen, offering a reliable and non-destructive approach to map strain progression and predict failure location.