In the present work, the two-back stress model is proposed and continuum damage mechanics (CDM) is incorporated into the plastic constitutive relation in order to describe the plastic deformation localization and the damage evolution in a deforming continuum body. Coupling between damage mechanics and isothermal rate independent plasticity is performed using the kinematic hardening rule, which in turn is formulated by combining the nonlinear Armstrong-Frederick rule and the Phillips rule. The numerical analyses are carried out within h deformation theory. It is noted that the damage evolution within a work piece accelerates the plastic deformation localization such that the material with lower hardening exponent results in a rapid shear band formation. Moreover, the results from the numerical analysis reflected closely with the micro-structures around the fractured regime. The effects of the various hardening parameters on deformation localization are also investigated. As the nonlinear strain rate description in the back stress evolution becomes dominant, the strain localization becomes intensified as well as the damage evolution.