In situ high energy X-ray diffraction synchrotron was used to provide direct analysis of the transformation sequences in steel-based matrix composite (MMC) reinforced with TiC particles. Evolution of the phase fractions of the matrix and TiC particles as well as the mean cell parameters of each phase were determined by Rietveld refinement from high energy X-ray diffraction (ID15B, ESRF, Grenoble, France). In addition, some peaks were further analysed in order to obtain the X-ray strain during the cooling step. Non-linear strain evolutions of each phase are evidenced, which are either associated with differences in the coefficient of thermal expansion (CTE) between matrix and TiC particle or to the occurrence of phase transformation. Micromechanical calculations were performed through the finite element method to estimate the stress state in each phase and outline the effects of differences in CTE and of volume change associated with the matrix phase transformation. The calculated results led to a final compressive hydrostatic stress in the TiC reinforcement and tensile hydrostatic stress in the matrix area around the TiC particles. Besides, the tendencies measured from in situ synchrotron diffraction (mean cell parameters) matched with the numerical estimates.