Shape Memory Alloy (SMA) composites are being used in an ever-expanding set of applications. For new applications, SMA composites are being developed as metal-ceramic Functionally Graded Materials (FGMs) utilizing SMA as the metallic phase, which contain both high temperature resistance of the ceramic phase and the mechanical properties of SMA composites. Three models including Averaging Technique of Composites (ATC), Mixture Rule (MR) and Mori-Tanaka (MT) scheme are used to calculate the stress distributions of the system subjected to thermal loading, respectively. The results obtained from the analyses of an SMA-ceramic graded composite show that after transformation the stress in the SMA composite is lower than in the case of pure elastic composite under the same thermal loading. This decrease stress can result in an increase in temperature resistance and improved mechanical properties of SMA composites. This work will be explored through a parametric study to understand their influence on SMA composite design.