The objective of this work was to develop a technique for predicting the residual compression strength of sandwich panels containing impact damage in one facesheet. The technique was tailored to predict the strength of specimens that exhibit a failure mode involving the formation of kink bands at locations of peak strain in the region of impact damage. Under continued compression loading, the kink bands propagate in a stable manner perpendicular to the applied load. When a critical kink-band length is reached, growth becomes unstable corresponding to panel failure. The analysis follows in two sections. The first section calculates the far-field stress required for stable kink-band growth and the second calculates that required for unstable growth. The residual strength prediction is made when the stress for stable growth becomes equal to that for unstable kink-band growth. Initial comparisons between analysis and experiment show good agreement.