In this paper, strengthening of a steel pipe with a composite wrap is analyzed. An analytical model taking into account joint reaction of the pipe and the wrap, two-dimensional stress state and plastic strains in the pipe wall is developed. Verification of the model is performed by comparison of the numerical results to the full-scale test results for a strengthened pipe under the action of internal pressure. The developed model is applied to the analysis of a buried gas pipeline subjected to the internal pressure and temperature loading. The results obtained with the analytical model are compared to the results of a finite-element simulation. A good agreement is established. The effect of wrap thickness on the stress–strain state and load-carrying capacity of the strengthened pipe is studied.