Giant magnetostrictive composites have attracted a great deal of attention by supplementing shortcomings of monolithic Terfenol-D such as brittleness, eddy current loss and formability. Recently, infiltrated Terfenol-D/Epoxy composite has been developed as an alternative composite. This composite was fabricated by an unidirectional solidification of Terfenol-D followed by an infiltration of epoxy. The iron content in composite has been changed in order to control volume fraction of RFe2 phase producing magnetostriction on Terfenol-D/Epoxy composite. The magnetostriction of both as-grown and infiltrated Terfenol-D/Epoxy composite was measured to confirm the effects of eutectic phase and heat treatment on magnetostriction. The enhancement of magnetostriction of Terfenol-D/Epoxy composite was mostly contributed by the eutectic phase through the hindering of movement and rotation of domain walls. The magnetostriction modelling of Terfenol-D/Epoxy composite was suggested, based on the change of texture and elastic modulus. The suggested model was in good agreements with the experimental results on the measurement of magnetostriction of Terfenol-D/Epoxy composite.