A model is established to quantify the influence of interfacial microcracks on the elastic properties of a particulate composite using a combination of theoretical and finite element analysis. A unique way to construct physical models which could accommodate both crack size and crack density is proposed. Based on energy principles, the influence of a dilute concentration of interfacial microcracks is first studied. The case of a finite concentration of microcracks is solved subsequently by combining the dilute concentration solutions and the differential scheme. Both cases agreed well with existing composite theories for the limiting condition of complete decohesion. The final model predicts the effective elastic properties as functions of both crack size and microcrack density.