This paper presents results from an experimental study of the influence of embedded defects created during automated fiber tape placement, on the mechanical properties of carbon/epoxy composites. Two stacking sequences have been examined, [(-45°/+45°)3/-45°] and [90°4/0°3/90°4], in which gaps and overlaps have been introduced during fiber placement. These materials have been cured in an autoclave either with or without a caul plate, then analyzed by ultrasonic C-scan. The microstructures were characterized by scanning electron microscopy. In-plane shear tests were performed on the ±45° laminates and showed that the use of a caul plate does not affect mechanical behavior of plies in the embedded defect region. Compression tests were performed on 0/90° laminates and in this case the presence of a caul plate is critical during polymerization as it prevents thickness variations and allows defects to heal.