Particle debonding or dewetting constitutes one of the key damage processes in highly filled particulate composites such as solid propellant and other energetic materials. To analyze this failure process, we have developed a multiscale finite element framework that combines, at the microscale, a nonlinear description of the binder response with a cohesive model of the damage process taking place in a representative periodic unit cell (PUC). To relate micro‐scale damage to the macroscopic constitutive response of the material, we employ the mathematical theory of homogenization (MTH). After a description of the numerical scheme, we present the results of the damage response of a highly filled particulate composite subjected to a uniaxial macroscopic strain, and show the direct correlation between the complex damage processes taking place in the PUC and the nonlinear macroscopic constitutive response. We also present a detailed study of the PUC size and a comparison between the finite element MTH‐based study and a micromechanics model of the dewetting process.