Abstract: Based on Tanaka and Liang's constitutive model of shape memory alloys, the linearized constitutive relation of SMA, embedded in matrix, was derived. Such a constitutive relation can easily be used in commercial finite element programs to treat the shape memory effect as the thermal effect of conventional materials. An intelligent structure, made up with TiNi belts embedded in the metal matrix to actively control the crack in the matrix, was analyzed using the method. Comparison of the calculated and test results shows that the method is practicable.