Single fiber pull-out technique has been commonly used to characterize the mechanical behavior of interface in fiber reinforced composite materials. An improved analysis considering the effects of transversely isotropic properties of fiber and the effects of thermal residual stresses in both radial and axial directions along the fiber/matrix interface is developed for the single fiber pull-out test. Although the stress transfer properties across the interface is not much affected by considering the transversely isotropic properties of fiber, interfacial debonding is notably encouraged by the effect. The interfacial shear stress that plays an important role in interfacial debonding is very much affected by the component of axial thermal residual stress in the bonded region, which can induce a two-way debonding mechanism.