Fiber reinforced composite materials are widely used in aerospace structures due to their high specific stiffness and strength. These materials exhibit complex deformation, damage and failure mechanisms under high strain rate loading conditions. Many different failure criteria have been proposed in literature to describe the damage initiation and evolution of fiber reinforced composite materials. Most of these damage models are based on a local framework. In a local framework, the material behavior is based on a point-wise constitutive relation which is independent of the effect of the surrounding points. These models include stiffness degradation when damage initiates in the material, which within a local framework leads to a highly mesh dependent result. This could be overcome using a nonlocal finite element approach. In the current work, a nonlocal formulation based on the work by Andrade et al [1] is adapted to describe composite material behavior. The LS-DYNA rate dependent progressive damage model, MAT162 is employed to detect the initiation and evolution of damage in orthotropic composite materials. This model is developed as a FORTRAN user material subroutine in the LS-DYNA environment. The results of MAT162 with and without the nonlocal formulation are compared at different mesh densities to validate the model. The numerical analysis exhibits the advantages of the nonlocal formulation.