A new method has been developed for creating localised in-plane fibre-waviness in composite coupons and used to create a large batch of specimens. This method could be used by manufacturers to experimentally explore the effect of fibre-waviness on composite structures both directly and indirectly to develop and validate computational models. The specimens were assessed using ultrasound, digital image correlation and a novel inspection technique capable of measuring residual strain fields. To explore how the defect affects the performance of composite structures, the specimens were then loaded to failure. Predictions of remnant strength were made using a simple ultrasound damage metric and a new residual strain-based damage metric. The predictions made using residual strain measurements were found to be substantially more effective at characterising ultimate strength than ultrasound measurements. This suggests that residual strains have a significant effect on the failure of laminates containing fibre-waviness and that these strains could be incorporated into computational models to improve their ability to simulate the defect.