It is well known that both damage and plastic anisotropy strongly affect the ductility limit of thin metal sheets. Due to the manufacturing processes, initial defects, such as inclusions and voids, are commonly present in the produced sheet metals. Plastic anisotropy is a direct outcome of the rolling process, where the resulting metal sheets exhibit preferred crystallographic orientations or strong texture. In the present study, the combined effect of plastic anisotropy and damage on localized necking is numerically investigated and analyzed. To this aim, an improved version of the Gurson-Tvergaard-Needleman (GTN) constitutive framework is used to model the mechanical behavior of the studied sheet. This version, which is an extension of the original GTN model, incorporates Hill’s anisotropic yield function to take into account the plastic anisotropy of the matrix material. Particular attention is devoted to the derivation of the analytical tangent modulus associated with this constitutive model. This extended GTN model is successfully coupled with bifurcation theory to predict sheet metal ductility limits, which are represented in terms of forming limit diagrams (FLDs). The effect of some material parameters (e.g.,anisotropy parameters of the metallic matrix) on the shape and the location of the predicted FLDs is then investigated and discussed through numerical simulations.