The formation of solid electrolyte interphase and diffusion induced microcrack in the lithium-ion battery electrodes are predominant degradation mechanisms, which cause capacity fade and cell impedance rise. Physics-based degradation models reveal new insights and allow fundamental understanding of the transport-chemistry-mechanics interactions. In addition, simulation-based diagnostics (e.g. electrochemical impedance spectroscopy, acoustic emission characteristics) can enable virtual probing and interrogation of electrode degradation behavior. This short perspective highlights the recent progress in physics-based degradation modeling and virtual diagnostics in lithium-ion battery electrodes. A thermal-electrochemical model that gives spatial-dependent growth of solid electrolyte interphase in a Li-ion battery," Journal of Power Sources, 2014, 268, 482-490. Using the thermal-electrochemical model, the authors reported the thermal behavior of the SEI layer. This model successfully captures the high capacity loss in high-temperature operation. In this article, the authors developed a lattice spring based computational model to capture the concentration gradient induced microcrack formation and evolution in graphite active particles under disparate operating and cycling conditions.