The effect of voids on the moisture uptake and transverse modulus and strength of a unidirectional glass/epoxy composite has been examined. To create voids, a foaming agent was mixed with the liquid epoxy resin prior to infusion. Micrographs of polished cross-sections indicate that voids are close to spherical in shape appearing in the matrix and at the fiber/matrix interface. The fiber, matrix, and void contents were analyzed by micrograph, burn-off, and density (Archimedes) methods. The void contents in the void-free and void-containing composites were respectively close to zero and 21%. Specimens were immersed in distilled water at 40°C until saturation. The weight gain was monitored periodically. For the void-free specimens, saturation moisture contents of about 0.60%. The void-containing specimens absorbed much more water, about 5%. The Fickian diffusion model provided good fits to experimental data although the transport mechanism for the void-containing composite appeared non-Fickian. Young’s modulus of the void-free composite was slightly affected by water absorption, although, the transverse tensile strength dropped significantly. Voids were found to substantially reduce transverse modulus and strength about 70%, for both dry and water saturated specimens. Moisture content analysis was in good agreement with experiments for the void-free composite but over-predicted the moisture content for the voidcontaining composite. Micromechanics predictions of the transverse modulus were within 21% of the experimental results for void-free and void containing composites at dry and water saturated conditions.