The Carbon Fiber Reinforced Polymer (CFRP)-wrapped steel pipeline system is emerging as an alternative for the repair and long-distance transportation of oil and gas. This system is recognized as a composite material. Under internal pressure, the pipe predominantly undergoes circumferential stretching. This study derives the tensile constitutive model of the steel-CFRP composite material using uniaxial tensile tests and the rule of mixtures. Subsequently, utilizing this newly calibrated constitutive model, a computational model to assess the internal pressure capacity of the steel-carbon fiber composite pipe was established. Finally, a comparison between the theoretical outcomes of the computational model and the actual internal pressure test results revealed a high degree of correlation. This holds substantial significance for the design and practical implementation of this novel composite pipeline system.