The microstructure of dual-phase (DP) steels is composed of a matrix of ferrite reinforced by islands of martensite and the common interphase boundaries. To study the mechanical behavior of DP steels, steel with 45% ferrite and 55% martensite was fabricated and tested in the laboratory. Two types of finite element models were then created based on SEM images. The first model directly created the grains and boundaries from the SEM images, while the second model used a Voronoi type algorithm to construct geometries which are statistically similar to the SEM images. The models consider the measured morphology of ferrite, martensite, and their phase boundaries. The Gurson damage model was then used for the ferrite and boundary regions. The obtained results correctly predicted the failure mechanisms in a DP material. The results indicate that the deformation is localized due to microstructural inhomogeneities and the nucleation of voids in the boundaries between the ferrite and martensite grains. The good correlation between the numerical and experimental observations from SEM micrographs shows the efficiency of the proposed models in predicting the failure mechanism of DP steels.