This paper newly proposes a continuum based rebar element considering change of the orientation of the fiber during deformation of the composite. The mechanical behavior of the embedded fiber is modeled using two-node bar elements in order to consider the relative deformation and spatial orientation of the embedded fiber. For improvement of the analysis accuracy, the load–displacement curve of fiber is applied to the stiffness matrix of fiber. A finite element program is constructed based on the total Lagrangian formulation considering both geometric and material nonlinearity. Finite element analyses of the tensile test are carried out in order to evaluate the validity of the proposed method. Analysis results obtained with the proposed method provides realistic representation of the fiber reinforced rubber composite compared to results of other two models by the Halpin–Tsai equation and a rebar element in ABAQUS/Standard.