Unidirectional fiber-metal matrix composites have superior mechanical properties along the longitudinal direction. However, the applicability of continuous fiber reinforced MMCs is somewhat limited due to their relatively poor transverse properties. Therefore, the transverse properties of MMCs are significantly influenced by the properties of the fiber/matrix interface. In this study, the interfacial stress states of transversely loaded unidirectional fiber reinforced metal matrix composites investigated by using elastic-plastic finite element analysis. Different fiber volume fractions $(5-60\%)$ were studied numerically. The interface was treated as thin layer (with different properties) with a finite thickness between the fiber and the matrix. The fiber is modeled as transversely isotropic linear-elastic, and the matrix as isotropic elastic-plastic material. The analyses were based on a two-dimensional generalized plane strain model of a cross-section of an unidirectional composite by the ANSYS finite element analysis code.