To instantly obtain the deformation and damage inside the composites, fiber optic sensors are embedded in the composites, referred to intelligent composites. In this way, the safety and stability of the composites can be evaluated in the process of use. However, the embedded optical fiber will generally damage the integrity and continuity of the composite material, resulting the extreme stress concentration in the interface of the optical fiber and composite. To quantitatively analyze the influence of the optical fiber on the compressive mechanical properties of composites, this paper develops a three-dimensional progressive damage analysis model, which can predict the stiffness and strength properties of fiber smart composites. The developed model is further verified via comparing the obtained compressive failure mechanism with the experimental results. The results show that the gradual failure mechanism predicted by 3D Hashin well matches the experimental results. Finally, the influence of the parameters, i.e., the fiber diameter and its located layup on the compression performance of the smart composites are discussed. The work of this paper can provide some ideas for the optimization and strength prediction of smart composite structures with embedded optical fibers.