This paper focuses on the in-plane mechanical behavior of a twill 2,2 carbon-Dyneema® fabric reinforced hybrid composite. A finite element (FE) model of a meso-scale representative volume element (RVE) is developed for simulating the in-plane behavior of the composite. The development of damage in both carbon and Dyneema® yarns is modeled through progressive damage models with linear softening laws and the non-linear response of the Dyneema® yarn is experimentally determined and described by the Ramberg-Osgood equation. The epoxy resin is regarded as an elasto-plastic material. In addition, the role of RVE size in modeling the behavior of the hybrid composite is investigated. It is found that a minimum of size of about five basic units of RVEs is necessary to achieve acceptable predictive results due to shear lag effects.