Shape memory alloys(SMAs) exhibit pseudoelastic behavior, characterized by the recovery of an original shape even after severe deformation, during loading and unloading within appropriate temperature regimes. The distinctive mechanical behavior is associated with stress-induced transformation of austenite to martensite during loading and reverse transformation to austenite upon unloading. To develop a material model for SMAs, it is imperative to consider the difference in moduli of active phases. For example, the Young’s modulus of the martensite is one-third to one half of that of the austenite. The model proposed herein is a modification of the one proposed recently by Ho[17]. The prediction of the behavior of SMAs during unloading before the onset of reverse transformation was improved by introducing a new internal state variable incorporating the variation of the elastic modulus.