We find a rigorous solution describing the macroscopically uniform stress state of a periodic granular composite with transversely isotropic phases. The structure of the composite is modeled by a cube containing a finite number of arbitrarily arranged and oriented, transversely isotropic spherical inclusions. This provides the model with a flexible means of describing the microstructure. Applying periodic vector solutions and local expansion formulas reduces the initial boundary-value problem to a system of linear algebraic equations. By averaging the solution over the unit cell, we derived exact finite expressions for the components of the effective stiffness tensor. The numerical data presented help to evaluate the efficiency of the method and the limits of applicability of available approximate theories.Keywords: periodic granular composite, transversely isotropic elastic phases, periodic structural model, spherical inclusion, effective stiffness tensor 1. Introduction. The best known approaches to predicting the macroscopic properties of structurally inhomogeneous materials are, probably, the stochastic approach based on methods of statistical mechanics [5][6][7][8] and the regularization method [1,2,4,9,12]. The latter consists in modeling a real composite by a periodic structure and solving boundary-value problems, followed by averaging of local fields. Both approaches are well developed for periodic granular composites with isotropic phases; for a review on the subject see [2,4,5]. The statistical theory of deformation and damage of composites with anisotropic phases is developed in [6-8]. All well-known applications of the regularization method are restricted to fibrous materials alone [1,4].In the present paper, we will find a rigorous, asymptotically exact solution describing the elastic equilibrium of a periodic composite with spherical inclusions, assuming transverse isotropy of the phases. The unit cell is a cube containing a finite number of arbitrarily arranged and oriented, transversely isotropic spherical inclusions. This provides the model with a general and flexible means of describing the microstructure [2]. To derive the solution, we will employ the earlier results for a transversely isotropic body with one [10, 11] and several [3] inclusions and a fast-summation method for triple series [12].2. Composite Model. The generalized periodic structural model of a granular composite [2] is an infinite matrix containing periodically arranged spherical inclusions. This model has a unit cell in the form of a cube with side length a containing N spherical inclusions of radius R q centered at points Q q N q , , ,... , = 12 . This cell, when repeated in three mutually perpendicular directions, produces the entire structure of the composite. Both the matrix and inclusions are assumed elastic and