When plastic slip is initiated in shape memory alloys (SMA) it has an adverse effect on the recovery capability of the SMA. A constitutive model that simulates the effect of Plasticity on shape memory behavior is used to simulate the behavior of a simple three-bar structure under a tensile loading. The SMA is assumed to have only three phases, austenite, positive variant martensite and negative variant martensite. If the SMA flows plastically, each phase present will exhibit a dislocation field that permanently prevents a portion of the phase from being transformed into other phases. The model was implemented as a UMAT (User MATerial Subroutine) in the commercial finite element package ABAQUS. The three-bar truss structure was simulated using the constitutive model and the results were compared to experimentally obtained data. The model has successfully captured the behavior of the truss structure quantitatively and qualitatively.