Interfaces can play a dominant role in the overall response of a body. The importance of interfaces is particularly appreciated at small length scales due to large area to volume ratios. From the mechanical point of view, this scale dependent characteristic can be captured by endowing a coherent interface with its own elastic resistance as proposed by the interface elasticity theory. This theory proves to be an extremely powerful tool to explain size effects and to predict the behavior of nano-materials. To date, interface elasticity theory only accounts for the elastic response of coherent interfaces and obviously lacks an explanation for inelastic interface behavior such as damage or plasticity. The objective of this contribution is to extend interface elasticity theory to account for damage of coherent interfaces. To this end, a thermodynamically consistent interface elasticity theory with damage is proposed. A local damage model for the interface is presented and is extended towards a non-local damage model. The non-linear governing equations and the weak forms A. Esmaeili 路 P. Steinmann (B) Chair of Applied Mechanics, University of Erlangen-Nuremberg, Egerlandstrasse 5, 91058 Erlangen, Germany e-mail: paul.steinmann@ltm.uni-erlangen.de A. Esmaeili e-mail: ali.esmaeili@ltm.uni-erlangen.de A. Javili Department of Mechanical Engineering, Bilkent University, 06800 Ankara, Turkey e-mail: ajavili@bilkent.edu.tr thereof are derived. The numerical implementation is carried out using the finite element method and consistent tangents are listed. The computational algorithms are given in detail. Finally, a series of numerical examples is studied to provide further insight into the problem and to carefully elucidate key features of the proposed theory.