The aqueous environment can deteriorate the fibre-matrix interface of carbon fibre-reinforced polymer (CFRP), significantly impairing the non-fibre-dominated mechanical properties. Thus, this study aimed to quantitatively analyse the impact of interfacial degradation on the hydrothermal ageing mechanism and process of the CFRP. Firstly, entire water absorption process of the CFRP under hydrothermal conditions was divided into three stages according to experimental measurement of its water content. Based on this division of stages, a novel water diffusion model was established for the hydrothermally aged CFRP. To measure the mechanical degradation, tensile tests were conducted on unaged, aged, and redried neat epoxy and transversely positioned unidirectional (UD) CFRP specimens. It was found that the transverse tensile strength degradation of UD CFRP was irreversible due to the permanent interfacial debonding between the fibres and matrix, in contrast to the reversible ageing of the epoxy matrix. To further quantify the fibre-matrix interfacial ageing, physically-based models were established for the degraded interfacial strength of CFRP subjected to hydrothermal conditions. After the characterization of the modelling coefficients, the physically-based models can be employed to predict interfacial strength inside the aged CFRP for various ageing durations. The prediction error was only 4.57 % for the transverse tensile strength of degraded UD CFRP with various ageing durations from the representative volume element (RVE) simulation with its interfacial strength provided by the physically-based models, validating the effectiveness of the proposed physically-based models for degraded fibre-matrix interface under various ageing conditions.