This study proposes a thermo-elastic coupled nonlinear finite element (FE) model for laminated composite beams with active SMA layers based on a higher-order layerwise theory and Brinson's model of SMA's phase transformation constitutive relations. The developed FE Model is further discretized by using the Newton-Raphson time integration scheme to update SMA's phase transformation progress step by step. This new model can be used for thermal-mechanical behavior analysis of hybrid SMA-composite laminated beams, which especially enables accurate prediction for static response of moderately thick to thick beams, large deformation analysis, through-thickness variations of interlaminar stresses and strains. The accuracy and effectiveness of the proposed approach are verified by several numerical examples, and the results are compared with those obtained from corresponding alternative solutions and experimental tests. Using the developed FEM, the effects of temperature, geometrical nonlinearity, pre-strain of SMA, and stacking sequence of composite laminates on the static response of hybrid SMA-composite beams are studied.