Stress concentration at the interface between the matrix of metal and hard inclusions is simulated photoelastically, using a two-dimensional polymer model with polymer inclusions of higher elastic modulus. The effect of inclusion shape, size, location, orientation, elastic modulus, of the strength of bonding between inclusions and matrix, and of the presence of an elastic transition zone is evaluated. Results have served as a guide in selecting more favorable inclusion configurations in the rational design of a wear-resistant steel alloy.