Shape memory alloys (SMAs) are metallic materials that are characterized by their ability to restore their original shape after large deformation when activated by heating. This unique property renders SMAs appealing for various civil engineering applications. Iron-based SMAs (Fe-SMAs), including alloys like Fe–Mn–Si, stand out due to their cost-effectiveness and high strength. The primary focus of this research lies in the computational modeling of Fe-SMA strips utilized to reinforce damaged concrete structures. To achieve this, details from an experimental test are leveraged for the computational simulation of real-scale reinforced concrete beams that were first loaded to some level of damage, then released and strengthened, and subsequently retested. The strengthening approach involves the application of external Fe-SMA strips wrapping around the beams. This paper presents an original computational modeling setup that incorporates a switch option for the Fe-SMA material. This feature enables one to use a single simulation platform for the whole process. The significance of this method originates from its capacity to ensure a robust analysis that includes all simulation steps-testing unstrengthened beams, installing and heating Fe-SMA strips, and testing both damaged and strengthened beams—in a single, multi-step analysis. The computational simulation results were compared with the outcomes of the experimental test, revealing an acceptable level of agreement. The findings indicate a substantial increase in both shear strength and ductility as a result of the application of Fe-SMA strips. Additionally, parametric and mesh sensitivity studies were conducted. These aimed to investigate the mesh dependency of the model and to identify the optimal mesh size. Furthermore, variations in the details of the Fe-SMA strips, including thickness, width, quantity, and effect of applied temperature were explored to compare the outcomes of different applications of these strips.