Abstract: Considering the non-linear elastic behaviour of concrete, the normal stress at fibre ends and thermal effect on shear stress and normal stress in fibre, the traditional shear-lag theory of stress transfer in short fibre reinforced concrete-matrix composites is improved. The effect of concrete strain, stress coefficients at fibre end and temperature difference on carbon fibre reinforced concrete (CFRC) is studied. It is found that the influence of strain on stress and normal stress in fibre is larger in plastic stage than that in elastic stage. The effect of stress coefficients at fibre ends on shear stress and normal stress in fibre is linear. In addition, shear stress and temperature change with the same tendency, but temperature does not affect normal stress in fibre.