This paper studied the mechanical and thermal properties of interpenetrating phase composites (IPCs) of Ni-Al2O3 using finite-element-based object-oriented program (OOFEM). It is difficult to model structure-property relationship in IPCs because of interpenetration of two or more phases. In order to understand the material behavior, OOFEM combines the microstructural data in the form microscopic images with the fundamental material properties (such as Young’s modulus or thermal conductivity of the constituent phases). Thermal conductivity, thermal expansion coefficient, and modulus of elasticity for the composites are examined using OOFEM and compared with other methods. The distribution of residual thermal stresses is also investigated.