The fluid-structure interaction of reacting materials requires computational models capable of resolving the wide range of scales present in both the condensed phase energetic materials and the turbulent reacting gas phase. This effort is focused on the development of a micro-scale structural model designed to simulate heterogeneous energetic materials used for solid propellants and explosives. These two applications require a model that can track moving surfaces as the material burns, handle spontaneous formation of discontinuities such as cracks, model viscoelastic and viscoplastic materials, include finite-rate kinetics, and resolve both micro-scale features and macro-scale trends. Although a large set of computational models is applied to energetic materials, none meet all of these criteria. The Micro-Scale Dynamical Model serves as the basis for this work. The model is extended to add the capabilities required for energetic materials. Heterogeneous solid propellant burning simulations match experimental burn rate data and descriptions of material surface. Simulations of realistic heterogeneous plastic-bound explosives undergoing impact predict the formation of regions of localized heating called hotspots which may lead to detonation in the material. The location and intensity of these hotspots is found to vary with the material properties of the energetic crystal and binder and with the impact velocity. A statistical model of the hotspot peak temperatures for two frequently used energetic crystals indicates a linear relationship between the hotspot intensity and the impact velocity. This statistical model may be used to generate hotspot fields in macro-scale simulations incapable of resolving the micro-scale heating that occurs in heterogeneous explosives.