Fiber reinforcement can help to enhance soil strength, stabilize near-surface soil layers, and mitigate the risk of soil liquefaction. Evaluation of the strength of fiber-reinforced soils needs a proper failure criterion. This study presents a three-dimensional failure criterion for fiber-reinforced sand. By assuming that the total strength of the composite is a combination of the shear resistance of the host soil and the reinforcement of fibers, a general anisotropic failure criterion is proposed with special emphasis on the effect of isotropically/anisotropically distributed fibers. An anisotropic variable, defined by the joint invariant of the deviatoric stress tensor and a deviatoric fiber distribution tensor, is introduced in the criterion to quantify the fiber orientation with respect to the strain rate/stress direction at failure. With further consideration of the fiber concentration and other factors such as aspect ratio, the proposed criterion is applied to predicting the failure of fiber-reinforced sand in conventional triaxial compression/extension tests for both isotropically and anisotropically distributed fiber cases. The predictions are in good agreement with the test results available in the literature. The practical significance of using this criterion for such problems as inclined slope stabilization is briefly discussed.