This study investigated the use of Representative Volume Elements (RVEs) to understand stress distribution in magnetoelectric composites. These composites, which combine piezoelectric and magnetostrictive phases, were shown to have performance strongly influenced by stress development at the microscale. Given the inherent heterogeneity of real materials, the RVE approach provided a means to capture microscale behavior and translate it into effective macroscale properties. Two scenarios were modeled to examine the effect of inclusion arrangement: one with ordered inclusions placed at regular intervals, and another with randomly distributed inclusions, representing more realistic microstructures. Boundary conditions for the RVE simulations were derived from a preliminary test model, where average strain values under thermal loading were calculated and then imposed on the RVE boundaries.The findings indicated that ordered inclusions promoted more uniform stress distributions, reducing concentration zones and resulting in a predictable material response. In contrast, random inclusions produced localized stress peaks and irregular patterns, demonstrating how microstructural disorder amplified stress heterogeneity. The study highlighted the importance of microstructural arrangement in influencing the mechanical response of magnetoelectric composites. By linking domain-level interactions with continuum-level performance, the RVE framework provided a robust tool for predicting stress evolution. This approach offered valuable insights into stress mechanisms at inclusion boundaries and suggested pathways for optimizing composite design for advanced sensing, actuation, and multifunctional applications.