It is generally accepted that cracks degrade the load bearing capacity of thin plates. The aim of the present paper is to investigate the influence of central cracks on the residual strength and stiffness degradation of shear panels using numerical finite element analysis. Various geometrical and mechanical characteristics of cracked panels such as the crack length, crack angle of inclination, panel aspect ratio, slenderness of panel, boundary conditions, Poisson's ratio, and Young's modulus are considered in the analyses. It is shown that the length and the angle of cracks may change the buckling behaviour of shear panels, and their combinational effects can result in substantial degradation. (C) 2007 Elsevier Ltd. All rights reserved.