The longitudinal mechanical behavior of shape memory alloy (SMA) composite lamina subjected to longitudinally strain or stress controlled cyclic loading is investigated. The SMA is under pseudo-elastic condition and the fibers are embedded (bonded) to the host material. The influences of temperature, volume fraction of SMA and longitudinal modulus of the host material on the stress-strain relation and energy dissipation of the SMA hybrid composite lamina are discussed. The results indicate that the stress-strain curve of the lamina per cycle shows a hysteresis loop. The hysteresis damping decreases with increasing temperature and with decreasing volume fractions of SMA. In addition, the hysteresis damping is nearly independent of the longitudinal modulus of the host material under strain controlled loading. However, it depends dramatically on the longitudinal modulus of the host material under stress controlled loading, which shows the SMA composite lamina has high pseudo-elastic hysteresis damping when the longitudinal modulus of the host material is low.