Abstract: A micro mechanical method is proposed to account for the influence of thermal residual stress on elastic plastic deformation of composites. The method is based on the secant moduli method with second order stress moment and the elastic micro mechanical method proposed by Ponte Castaneda and Willis. This model can account for the influence of volume fraction, shape, orientation, and distribution of inclusions on macroscopic properties of composites with or without thermal stress. Finite element calculations are also carried out for unidirectional composites and compared with the proposed model.