SUMMARYThis paper presents an augmentation method that enables bilinear finite elements to efficiently and accurately account for arbitrary, multiple intra‐elemental discontinuities in 2D solids. The augmented finite element method (A‐FEM) employs four internal nodes to account for the crack displacements due to an intra‐elemental weak or strong discontinuity, and it permits repeated elemental augmentation to include multiple interactive cracks. It thus enables a unified treatment of damage evolution from a weak discontinuity to a strong discontinuity, and to multiple interactive cohesive cracks, all within a single bilinear element that employs standard external nodal DoFs only. A novel elemental condensation procedure has been developed to solve the internal nodal DoFs as functions of the external nodal DoFs for any irreversible, piece‐wise linear cohesive laws. It leads to a fully condensed elemental equilibrium equation with mathematical exactness, eliminating the need for nonlinear equilibrium iterations at elemental level. The new A‐FEM's high‐fidelity simulation capabilities to interactive cohesive crack formation and propagation in homogeneous, and heterogeneous solids have been demonstrated through several challenging numerical examples. It is shown that the proposed A‐FEM, empowered by the new elemental condensation procedure, is numerically very efficient, accurate, and robust. Copyright © 2014 John Wiley & Sons, Ltd.