A procedure to estimate the effective elastic moduli and coefficient of thermal expansion (CTE) of particulate-reinforced metal matrix composites (MMCs) using a two-dimensional finite element method is presented. The actual microstructural geometry of the composites with randomly distributed second-phase particles is incorporated in the model. A generalized plane strain technique, realistically to describe the three-dimensional behaviour, is also incorporated in the model. The elastic moduli and the CTE, estimated using this model, agree favourably with the experimental data. The technique is shown to be superior compared to the conventional two-dimensional plane stress and plane strain approximations. Also, the results indicate that the effect of the shape of the randomly distributed second-phase particles on the effective elastic moduli is insignificant. Although the procedure is demonstrated for particulate MMCs, it can be easily extended to many other materials as well.