A novel analytical framework for the inclusion of active damaging processes in a structural stability analysis is presented. The framework considers quasi-static deformation processes and is formulated in terms of a discrete coordinate approach, employing an extended total potential energy functional, where the current damage state is expressed in terms of geometric configuration and applied loading. Within the current framework, an efficient analysis of structures prone to buckling instability and material damage is enabled particularly where damage initiates once structural instability has been triggered. Composite panels with multiple damage mechanisms (e.g. delaminations, matrix cracks) are studied to showcase its application.