Ultrasonic consolidation of fiber optics in metals is of major importance allowing surface embedding and protecting the fibers from exposure to open environment. The paper investigates the computational modeling of this process of embedding fibers at the aluminum subsurface. This new method provides an opportunity to develop sensory materials (Mekid et al., 2015, “Towards Sensor Array Materials: Can Failure be Delayed?” Sci. Technol. Adv. Mater., 16(3), p. 034607) and new types of nervous materials (Mekid and Kwon, 2009, “Nervous Materials: A New Approach for Better Control, Reliability and Safety of Structures,” Sci. Adv. Mater., 1(3), pp. 276–285) for structural health monitoring applications. A thermo-mechanical analysis of embedding SiC fiber in aluminum substrate has been conducted. The temperature distribution was obtained using a thermal model with process-dependent heat flux at the sonotrode/foil interface, which is coupled to the structural model in an iterative manner for simulating fiber embedment. The structural model uses a process-dependent plastic flow rule with an isotropic hardening model. A ductile damage model is employed for the first time in simulating such problems in addition to the use of real material properties of the fiber, which has resulted in better numerical results. Both of these factors help in determining the extent of damage particularly to the fiber/sensor being embedded. The experimental test has shown good agreement.