The maximum strain failure criterion is unified with the maximum stress failure criterion, after exploring the implications of two considerations responsible for this: (1) the failure strains for the direct strain components employed in the maximum strain criterion are all defined under uniaxial stress states, not uniaxial strain states, and (2) the contributions to the strain in a direction as a result of the Poisson effect do not contribute to the failure of the material in that direction. Incorporating these considerations into the maximum strain criterion, the maximum stress criterion is reproduced. For 3D stress/strain state applications primarily, the unified maximum stress/strain criterion is then subjected to further rationalization in the context of transversely isotropic materials by eliminating the treatments that undermine the objectivity of the failure criterion. The criterion is then applied based on the maximum and minimum direct stresses, the maximum transverse shear stress and the maximum longitudinal shear stress as the invariants of the stress state, instead of the conventional stress components directly.