Tensile residual stress happen by difference of coefficients of thermal expansion between fiber and matrix is one of the serious problems in metal matrix composite(MMC). In this study, TiNi fiber was used to solve the tensile residual stress as the reinforced material. TiNi fiber improves the tensile strength of composite by occurring compressive residual stress in matrix using shape memory effect of it. Pre-strain was added to generate compressive residual stress inside TiNi/A16061 composite. It was also evaluated the effect of compressive residual stress corresponding to pre-strains variation. AE technique was used to clarify the microscopic damage behavior at high temperature and the effect of pre-strain difference of TiNi/A16061 shape memory alloy composite.