Abstract: The macro and micro mechanical behavior of smart composite materials reinforced by SMA was described by an analytical and numerical approach. The constitutive relations of the composite and dynamic equations of the SMA transformation were predicted. The numerical results in the uniaxial loading case illustrate the transformation mechanism of SMA under elastic matrix constraint and shape memory effect of the composites. It is shown that properties of the composite are considerably influenced by shape memory effect of SMA as well as the constituent properties, fraction and environment variable such as temperature.