Neutron strain scanning was employed to investigate the internal stress fields in steel plate coupons with embedded prestrained superelastic NiTi shape memory alloy inserts. Strain fields in steel were evaluated at T = 21 °C and 130 °C on virgin coupons as well as on mechanically and thermally fatigued coupons. Internal stress fields were evaluated by direct calculation of principal stress components from the experimentally measured lattice strains as well as by employing an inverse finite element modeling approach. It is shown that if the NiTi inserts are embedded into the elastic steel matrix following a carefully designed technological procedure, the internal stress fields vary with temperature in a reproducible and predictable way. It is estimated that this mechanism of internal stress generation can be safely applied in the temperature range from -20 °C to 150 °C and is relatively resistant to thermal and mechanical fatigue. The predictability and fatigue endurance of the mechanism are of essential importance for the development of future smart metal matrix composites or smart structures with embedded shape memory alloy components.