This paper deals with investigation of microscopic stresses and elastic moduli of three phase composites on the basis of double inclusion method (DIM) developed by Hori et al. The DIM, which is based on Eshelby's equivalent inclusion method, is useful to investigate the mechanical property of three phase composites. The applicability of the DIM to mechanical property of three phase composite is investigated by a finite element method (FEM). The stresses of each phase in the composites calculated by the DIM is a little different from those calculated by FEM. However, the average stresses of all phase in the composites calculated by the DIM agrees well with those calculated by FEM. Then, the elastic moduli and constituents of PSZ-Ti composites favricated by a hot pressing method are evaluated by the DIM.