TiNi/ Al6061 shape memory alloy (SMA) composite was fabricated by hot press method to investigate the microstructure and mechanical properties. Interface bonding between TiNi reinforcement and A1 matrix was observed by using SEM and EDS. Pre-strain was imposed to generate compressive residual stress inside composite. A tensile test for specimen, which under-went pre-strain, was performed at high temperature to evaluate the variation of strength and the effect of pre-strain. It was shown that interfacial reactions occurred at the bonding between matrix and fiber, creating two inter-metallic layers. And yield stress increased with the amount of pre-strain. Acoustic Emission technique was also used to nondestructively clarify the microscopic damage behavior at high temperature and the effect of pre-strain of TiNi/ Al6061 SMA composite.