Bearing failure is a cause of concern in a variety of machinery such as turbines, transmissions, drills, engines, etc. It is often associated with rolling contact fatigue (RCF) triggered from damage initiation at non-metallic inclusions (NMI’s). Experimental evidence shows that damage initiation lifetime is highly sensitive to the NMI characteristics and its bonding with the steel matrix. This study numerically investigates the role of NMI features and its bonding with the steel matrix on damage initiation lifetime. NMI characteristics modelled in this study are derived from an experimental investigation of a failed bearing. Simulation results highlight a near to instantaneous debonding at the matrix-inclusion interface followed by accelerated crack initiation. The critical depth for damage initiation shifts towards the surface with the increase in friction coefficient between roller and raceway. The simulations also reveal that larger inclusions show earlier damage initiation, indicating a size effect. The damage hotspots from the simulation results were compared with experimental findings and a hypothesis for crack initiation from a NMI is put forward. Display omitted •Near to instantaneous debonding occurs around the matrix-inclusion interface.•Presence of debonding increases the fatigue damage.•The critical depth for damage initiation shifts towards the surface with the increase in friction coefficient.•The simulations also reveal that larger inclusions show earlier damage initiation, indicating a size effect.•Pragmatic approach to estimate fatigue initiation lifetime based on material hardness.