A new Martensitic transformation kinetic model for shape memory alloy (SMA) is proposed based on the phenomenological description of the Martensitic transformation heat flow-temperature curve and on the linear relationship between the partial derivatives of Martensite fraction and of Gbbis free energy with respect to the temperature. A meso-mechanical model is developed to describe the longitudinal stiffness reduction and thermo-dilatation variation of the composites caused by fiber breaking or fiber peeling off the base material.One-dimensional incremental constitutive relation is then established for SMA wire reinforced smart composites with damages by introducing three parameters to respectively describe the extent of fiber breaking, fiber peeling off the base material and interface weakening. The results presented herein may provide a theoretical basis for further studying on SMA smart composites with damages.