The finite element analysis is presented in this paper in order to investigate residual stress distribution in the interphase of restoration-tooth structure due to polymerization shrinkage of resin-based composite. The restoration-tooth interface is simulated using plane elements of varying material properties and thicknesses. The stress within restored-tooth structure built-up from the polymerization shrinkage of the restorative composite were computed accounting for the time-dependent, visco-elastic behaviour of the composite. A sensitivity study is performed to examine the relative influence of geometric and material parameters of interphase on the shrinkage stress development. It was found that a correlation exists between material and geometry properties at the restoration-tooth interface and higher shrinkage stresses on interphase due to polymerization shrinkage. The development trend of residual stress from polymerization shrinkage in the restored-tooth structure was discussed and forecasted. The varying material and geometry properties of restoration-tooth interface seem to have conclusive effect on the interfacial stress system, as well as on the longevity of the restoration. From the purely mechanical point of view, this can result in interfacial debonding.