In process simulation of composite materials, 3D simulation of manufacturing processes is desirableconsidering the manufacturing trend where parts became more complex leading to complex3D stress-strain states. Moreover, coupling of sub-processes that are happening simultaneouslysuch as macro-scale preform processes, micro-infiltration and solid and fluid interactionrequires full 3D description of the problem.The development is exemplified considering compression moulding process of prepregs wherethe main focus of the modeling will be on the compression and compaction of directionalprepreg laminate and flow consolidation. To this end, the theory of two phase porous mediais used along with assuming hyper-elastic material response for the laminate to formulatethe problem. A finite element formulation and implementation of the two-phase problem is developedfor incompressible constituents and is implemented in a user defined element (UEL)to be used with Abaqus.