Body-centered cubic unit cell models and three-dimensional finite element method are used to study the inelastic deformation of rubber particle modified polymers. Calculations are carried out for three loading conditions, i.e. uniaxial loading, plane strain deformation loading and the so-called 'equivalent shear' loading. Distributions of the localized shear deformation are presented to understand the microscopic deformation mechanisms of the polymers. Effects of particle size, particle volume fraction and loading conditions on the micro- and macroscopic deformation behavior of rubber particle modified polymers are discussed.