Composite metal foams (CMF) are renowned for their high strength‐to‐density ratio, high stiffness, and energy absorption capabilities. Homogenized finite element models of CMF have been numerically solved to understand the mechanical behavior of the material under a variety of external loading conditions. This work aims to pioneer a comprehensive finite element model for steel–steel composite metal foam by incorporating the interactions between embedded stainless‐steel hollow spheres with entrapped air inside stainless‐steel matrix. The material behavior of hollow spheres, surrounding matrix, and air are modeled using Johnson–Cook (JC) plasticity, Deshpande–Fleck (D–F) foam, and linear polynomial equation of state in LS DYNA. Further, the finite element model utilizes a combination of Lagrangian solid elements and meshfree smooth particles hydrodynamics with appropriate contacts to effectively model the interaction of entrapped air within stainless‐steel hollow spheres with surrounding metallic spheres and matrix. The strain rate and the crosshead velocity of 65 s−1 and 2.4765 m s−1 are used for quasistatic compression analysis. Finally, the results obtained from the computational model are compared and validated using previously reported experimental quasistatic compression data. The numerical model corroborates stress–strain response of CMF with 5.6% error for plateau stresses average within 25% and 30% strain.