A two-dimensional program for the analysis of bimaterial inclusion has been developed using the bound- ary element method. In order to study the effects of circular inclusion on the stress field of the crack tip, numerical analysis was performed for the straight crack of finite length around the symmetric circular inclusion whose modulus of elasticity was different from that of the matrix material. In the case of inclusion whose stiffness was smaller than that of the matrix material, the stress intensity factor was found to increase as the crack enamated. The stress intensity factor was uninfluenced from the radial change in inclusion and remained constant for the stiffness equivalent to the matrix materials, where as it decreased for the inclusion with larger stiffness. For the vareation in the distance of the inclusion, a small increase in the stress intensity factor was observed for the case with small or equal stiffness compared with the matrix materials. The inclusion with larger stiffness showed a gradual decrease in the strss intensity factor as the crack emanated.