Deformation and mechanical damage in a three-dimensional braided carbon fiber reinforced carbon and silicon carbide ceramic composite, subjected to compressive loading, has been studied in situ by laboratory X-ray computed tomography. Dimensional change was measured and damage visualized by digital volume correlation analysis of tomographs. Cracks nucleated from defects within the fiber bundles and tended to propagate along the fiber bundle/matrix interface. For longitudinal compression, parallel to the fiber bundles, the initial elastic modulus decreased with increasing compressive strain while significant transverse tensile strains developed due to distributed cracking. For transverse compression, perpendicular to the fiber bundles, the compressive elastic modulus was effectively constant; the tensile strains developed along the fiber direction were small, whereas macroscopic fracture between the fiber bundles caused very large bulk tensile strain perpendicular to the loading. The observations suggest that the mechanical strength might be improved through control of pre-existing defects and application of stitch fibers in the transverse direction.