We have calculated the mechanical properties of brittle composites with spring-network (SN) model. The composites that we studied involve the transformation toughening effects and the accompanying micro-cracking. Our simulation results are consistent with experiments of MoSi2 toughened with ZrO2. By monitoring the stress changes due to the transformation and micro-cracking we are able to separate, for the first time, the contributions from these two competing effects. We also found that the fracture toughness of the composite increases as the modulus, interfacial cohesion of particle increases.