<p>This study aims to find the optimum design of reinforcing layers placed around the hole in a composite laminated plate to maximize its first-ply and ultimate failure strengths with minimum use of reinforcing material. The ultimate failure load is determined using a progressive damage model incorporating the Puck failure criterion and the material property degradation method. A finite element model is developed to simulate the structural response under loading. The model’s accuracy is confirmed by comparing its predictions with existing experimental data. The optimum local reinforcement designs are identified using a modified simulated annealing algorithm, which is made more reliable and easier to apply with the improvements introduced in this study. The optimization variables are chosen as the fiber orientation angles and the dimensions of the reinforcing layers. Optimizations are performed for different configurations of local reinforcements to determine the most effective way of placing the reinforcing layers. Significant improvements in the strength are obtained with minimal added mass through optimization.</p>