Thermomechanical behavior and mechanical properties of A16061 matrix composite with shape memory alloy(SMA) fiber are studied by using fnite element analysis(FEA). The smartness of the SMA is given due to the shape memory effect of the TiNi fiber which generates compressive residual stress in the matrix material when healed after being prestrained. In this paper, an analytical model is assumed two dimentional axisymetric model of one fiber and around the matrix. To evaluate the strength of composite usig FEM, the concept of smart composite was simulated on computer. The Shape memory effect(SME) simulation is very difficult using FEM because of the nonlinear analysis and the elastic plastic analysis. Thus, in this paper, the FEA was carried out at two critical temperature conditions; room temperature and high temperature(363K). The analysis is compare the finite element analysis result with the test result for the analysis validity.