The analysis of fretting fatigue plays an important role in many engineering fields. The presence of heterogeneity may affect the performance of a machine or a structure, including its lifetime and stability. In this paper, the effect of randomly distributed micro inclusions on the fretting fatigue behaviour of heterogeneous materials is analysed using the finite element method (FEM) for different sizes, shape and properties of inclusions. The effect of micro inclusions on macroscopic material properties is also considered by representative volume element (RVE). It is shown that the influence of micro inclusions on macroscopic material properties cannot be ignored, and the shape and size of the inclusions have less effect on the macroscopic material properties as compared to the material properties of inclusion and volume ratio. In addition, various parameters of inclusions have little effect on the peak tensile stress, which remains almost the same as homogeneous material. Peak shear stress occurs at many places inside the specimen, which can result in multiple cracking points inside the specimen, as well as at the contact surface. Moreover, the stress band formed by the stress coupling between adjacent inclusions may have an important influence on the direction of crack growth.