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In this paper, we presented a theoretical method for studying the behavior of magnetic field intensity and eddy current inside a magnetostriction based bi-layered composite. Firstly, the mathematical model for the electromagnetic field in the composite was established. Then, the governing equation for determining the magnetic field intensity and eddy current was solved. Furthermore, the effect of the composite’s conductivity on the magnetic field intensity and eddy current were discussed. Lastly, by comparing with the well known R.L. Stoll’s equation, the magnetic field intensity calculated based on our equation showed a less than 0.5% error.