This paper models the cyclic stress softening of an elastomer in compression. After the initial compression the material is described as being transversely isotropic. We derive non-linear transversely isotropic constitutive equations for the elastic response, stress relaxation, residual strain, and creep of residual strain in order to model accurately the inelastic features associated with cyclic stress softening. These equations are combined with a transversely isotropic version of the Arruda–Boyce eight-chain model to develop a constitutive relation that is capable of accurately representing the Mullins effect during cyclic stress softening for a transversely isotropic, hyperelastic material, in particular a carbon-filled rubber vulcanizate. To establish the validity of the model we compare it with two test samples, one for filled vulcanized styrene–butadiene rubber and the other for filled vulcanized natural rubber. The model is found to fit this experimental data extremely well.