An analytical elasto-plastic stress analysis is carried out on metal-matrix composite beams supported from two ends under transverse linearly distributed load. The composite beam consists of stainless steel fiber and aluminum matrix. The material is assumed to be perfectly plastic for the elasto-plastic solution. The expansion of the plastic region and the residual stress component of sigma(x) and tau(xy) are determined for 0, 30, 45, 60, and 90degrees orientation angles. The yielding begins at the upper and lower surfaces of the beam at the same distances from the ends. The intensity of residual stress component of sigma(x) is maximum at the upper and lower surfaces but residual stress component of tau(xy) is maximum on the x axis of the beam. The strength of the beam is increased by residual stresses.