In the process of using composite materials, crack damage is unavoidable. These cracks may cause a decrease in the structural performance of the material and may even pose a threat to the safety of the entire structure. In this paper, the shape memory alloy (SMA) is embedded into the composite material, and the strain transfer effect of the interface layer is considered. The crack monitoring and repair model of SMA composite material based on strain transfer are established using SMA resistance-sensing characteristics and SMA constitutive model. Based on this monitoring and repair model, the crack monitoring behavior of SMA under different initial states and temperature conditions is discussed, and the crack repair behavior of SMA under specific initial states and temperature conditions is also discussed. The research results show that the change in SMA resistance and the strain of the composite material crack are linearly segmented, and as the temperature increases, the composite material crack is gradually repaired. This study can provide theoretical guidance for the further engineering application of SMA composite material crack monitoring and repair theory.