By introducing an interaction energy function, the first two of the present authors proposed one-dimensional pseudoelastic theory of shape memory alloys, which has been demonstrated to model complicated experimental results and Tanaka's transformation kinetics qualitatively well. To study the stress-strain-temperature relationship, we will further develop the pseudoelastic theory by introducing temperature-dependent terms in the free energy function proposed by Ranieki and Bruhns. In addition, the effect of temperature is included in the interaction energy, For computational analysis, material parameters are estimated from data measured by Tobushi and his coworkers in their experiments, Numerical results show that predictions by the present theory agree with some essential feature of their experimental results.