High-resolution in situ synchrotron X-ray laminography combined with digital volume correlation (DVC) is used to measure the damage and plastic strain fields ahead of a notch introduced within a 2198 Al-Cu-Li alloy sheet. Synchrotron laminography is a technique specifically developed for three-dimensional (3-D) imaging of laterally extended sheet specimens with micrometre resolution. DVC is carried out using the 3-D image contrast caused by iron-rich intermetallic particles present in the alloy. The alloy is recrystallized and tested in T8 artificial ageing condition involving relatively low work hardening. Inclined strain localization bands are shown to develop at 800 µm from the notch prior to the onset of damage. Damage in this region results mainly from the nucleation of voids on micrometric intermetallic particles and occurs at a very late stage of deformation, followed by very limited void growth. The accumulation of strain in the slanted localization band is found to be a steady process, whereas the crack propagation is a sudden process. Standard 3-D FE calculations using either von Mises plasticity or Gurson's model do not capture the plastic localization process.