In this study, coupled adhesive and cohesive damages in asphalt concrete (AC) are computed using finite element method (FEM) modeling under dry and wet conditions. FEM model consists of an aggregate coated with mastic and surrounded by matrix materials, is developed by using ABAQUS. Laboratory tests were conducted on matrix and mastic materials under both dry and wet conditions to evaluate FEM model. Damage inside matrix material is considered as cohesive damage and inside mastic material is considered as adhesive damage. FEM model is simulated by static and one cycle of dynamic applied deformation. Results indicate that, cohesive damage is observed under both dry and wet conditions for dynamic load but more matrix areas are damaged under wet conditions than dry conditions. On the other hand, adhesive damage is higher under dry condition but cohesive damage is higher under wet condition for static loading condition. Both stiffness and strength of mastic and matrix materials are important factors to initiation and progression of damage in AC. Cohesive damage initiates at the surface of matrix but propagates towards mastic material and initiate adhesive damage since stiffness and strength of mastic material is lower than matrix material.