Stress induced magnetic field changes in epoxy-based Terfenol-D composite materials offer a unique way for stress sensing by using a remote magnetic field sensor. In this paper, we report simultaneous measurements of the stress, strain and emitted magnetic field during compressive tests performed at different temperatures in the range of [Formula: see text]C–65[Formula: see text]C. The observed results are explained based on the physical processes that occur at different stresses and temperature ranges. Measurement results reveal a temperature range ([Formula: see text]C–45[Formula: see text]C) suitable for stress sensing applications, at which the reverse magnetostrictive response is almost temperature insensitive. At 65[Formula: see text]C, the epoxy demonstrated a significant softening due to the glass transition, indicating that a high glass transition temperature is an important desired property for the epoxy matrix.