This paper presents a fully coupled, nonlinear electromagnetic-mechanical-thermal model for Terfenol-D devices which include active magnetostrictive materials and passive components. The model includes two parts: (1) a material-level discrete energy-averaged model (DEAM) to describe the magnetomechanical coupling and thermal effect of Terfenol-D and (2) a system-level finite element model formulated in weak form using Maxwell's equations, Newton's law, and heat transfer equations. The objective is to describe the electromagnetic, mechanical, and thermal dynamics of the device. The system finite element model is constructed in COMSOL Multiphysics, and the nonlinear behavior of Terfenol-D is coupled through lookup tables generated by the DEAM. Preliminary results of the output capacity of a Terfenol-D actuator with respect to ambient temperature are presented in terms of blocked force, free displacement, and output power. The blocked force and free displacement decrease by 8.0% and 29.8%, respectively, for a 12 A (RMS) excitation current, as the temperature increases from 20 °C to 180 °C. One of the key contributions of this study is that it accounts for both the temperature-dependent Terfenol-D properties and the thermal effects of surrounding passive systems.