Differential shrinkage between repair material and concrete substrate is considered to be the main cause of premature failure of repair systems. The magnitude of induced stresses depends on many factors, for example the degree of restraint, moisture gradients caused by curing and drying conditions, type of repair material, etc. Numerical simulations combined with experimental observations can be of great use when determining the influence of these parameters on the performance of repair systems. In this work, a lattice type model was used to simulate first the moisture transport inside a repair system and then the resulting damage as a function of time. 3D simulations were performed, and damage patterns were qualitatively verified with experimental results and cracking tendencies in different brittle and ductile materials. The influence of substrate surface preparation, bond strength between the two materials, and thickness of the repair material were investigated. Benefits of using a specially tailored fibre reinforced material, namely strain hardening cementitious composite (SHCC), for controlling the damage development due to drying shrinkage in concrete repairs was also examined.