Reinforcing fibers are available from various manufacturers with matrix compatible “finishes” applied to them. Usually these finishes or coatings are 100-200 nm thick resin layers applied after surface treatment. Their function has been hypothesized as being to enhance adhesion through either protecting the fiber from handling damage, protecting the fiber surface reactivity, or improving fiber wettability. This study of finished and unfinished graphite fibers concludes that the mechanism by which an epoxy compatible finish operates is different from what has been hypothesized to date. The finish layer creates a brittle interphase layer between the fiber and matrix which increases the interfacial shear strength but at the expense of changing the failure mode from interfacial to matrix.