Small composite bundles, AS4 carbon fibre epoxy, with a restricted number of reinforcing fibres, ca. 20, showed a progressive failure when tested in tension. In-situ acoustic emission observations under tensile load reveal that numerous fibres fail before ultimate failure of the small composite bundle, suggesting that isolated and individual fibre failures occur without compromising the integrity of the neighboring fibres or the small composite bundle’s overall mechanical performance. The average strength of the carbon fibres in small composite bundles was 9.6% higher than in standard lab-scale composite specimens using the same fibre type.