Controlled depth milling of composites structures by abrasive water jet (AWJ) is a new area of machining being explored and knowledge on this is bare minimum. Hence it is essential to investigate surface quality and damage induced to ascertain their mechanical reliability. Here, the mechanism of material removal is manifested by erosive wear. In this study, carbon fiber reinforced plastic (CFRP) laminates are milled using AWJ process and surfaces generated by varying process parameters are characterized using roughness systems, X-ray tomography and scanning electron microscopy (SEM). SEM images reveal presence of damages in form of craters, ridges, broken fibers and embedded abrasive particles. Crater formation due to erosion phenomenon is affected by jet pressure. It is seen that the crater volume increases by around 500% when pressure varies from 80MPa to 140MPa. In the literature reviewed correlation between roughness of the machined surface and the mechanical behavior is ambiguous and remains an open problem. Hence, novel attempt has been made to analyze the influence of damage (crater volume) on tensile strength. Mechanical tests on specimens with varying surface texture and crater sizes reveals that tensile strength of machined specimens is more influenced by crater volume rather than surface roughness. •First work on influence of abrasive water jet CFRP milling on mechanical behavior.•High jet pressure milling increases broken fibers which increase surface roughness.•Craters, broken fibers, ridges, debonding and grit embedment are major damages.•Quantified damage a better indicator of mechanical behavior than surface roughness.•Crater is the most influential damage form which depreciates the tensile strength.