An elastic-plastic thermal stress analysis was carried out on an orthotropic aluminum metal matrix composite disc with a hole by using an analytical solution. The thermal load distribution was chosen to vary parabolically from inner surface to outer surface. An aluminum composite disc reinforced curvilinearly by steel fibers was produced under hydraulic press. The mechanical properties of the composite disc were obtained from experiments by using strain gauges. A computer program was developed to calculate the thermal stresses under a parabolic temperature from inner surface to outer surface. The material was assumed to be non-linear hardening. The elastic-plastic solution was performed for the plastic region expanded around the inner surface by an analytical method. The magnitude of the tangential stress component for elastic and elastic-plastic was higher than the magnitude of the radial stress component. Besides, the tangential stress component was compressive on the inner surface and tensile on the outer surface. The magnitude of the tangential residual stress component was the highest on the inner surface of the composite disc. The plastic region began at the inner surface of disc.