Heat treatment for the purpose of material strengthening is accompanied by residual stresses and distortion. During these processing steps, steel alloys experience a phase change that in turn modify their overall mechanical response. To properly account for the cumulative composite behavior, the mechanical response, transformation kinetics and subsequent interaction of each phase have to be properly accounted for. Of interest to material designers and fabricators is modeling and simulating the evolutionary process a part undergoes for the sake of capturing the observable residual stress states and geometric distortion accumulated after processing. In an attempt to capture the aforementioned physical phenomena, this investigation is premised upon a consistent thermodynamic framework. Following this, the single phase Evolving Microstructural Model of Inelasticity state variable model is extended to accommodate the occurrence of multiphases, affirming that the interaction between coexisting phases is through an interfacial stress. Since the efficacy of a multiphase model is dependent on its ability to capture the behavior of constituents phases and their subsequent interaction, we introduce a physically based self-consistent strain partitioning algorithm. With synthesis of the aforementioned ideas, the additional transformation induced plasticity is numerically accounted for by modifying each phase’s flowrule to accommodate an interfacial stress. In addition, for simulating the cohabitation of two phases, the mechanical multiphase model equations is coupled with a previously developed non-diffusional phase transformation kinetics model. A qualitative assessment of the material response based on a Taylor, Sachs and self-consistent polycrystalline approximation is carried out. Further analysis of the multiphase model and its interaction with transformation kinetics is evaluated.