This study investigates laser-induced damage in thin silicon (Si) wafer ablation both experimentally and numerically. A 40-W continuous-wave CO2 laser is employed as the volumetric heat source. Experiments are conducted that involve variations in the laser cutting speed from 5 to 20 mm/s and the number of passes from one to three while maintaining a constant laser power of 40 W for investigation. The measured output parameters include surface morphologies, heat-affected zone (HAZ), and kerf width. For the first time, a finite element solution based on the brittle-ductile transition (BDT) phenomenon is introduced to predict temperature-stress gradients in the laser cutting region. Johnson-Cook (J-C) plasticity, along with the introduced damage criteria, are employed to analyse the cutting characteristics. The results show that the lowest CO2 laser speed and minimal number of passes enhance Si wafer quality. Nevertheless, increasing cutting speed and the number of passes significantly intensify material ablation and oxidisation due to elevated laser heat input. Using optimal parameters, numerical analysis shows a high level of agreement with experimental findings. Transverse/longitudinal stresses correlate with temperature, while the longitudinal stress is substantially lower compared to the transverse stresses due to thermal expansion and the direction of heat transfer. Following that, computed assessments of compressive and tensile stresses are used to refine specific laser parameters and locations for experimental setup.