The residual stress and the effect of microstructure parameters on failure performance of Ti/TiAl micro-laminated sheet were studied by Correlative theory and FE method. The results showed that the fracture work increases gradually with the increasing of layer number or thickness ratio. However, the rising extent reduced gradually and when the two parameters exceeded a certain value, the fracture work would not be changed. The value of residual stress reached its maximum at the centre and reached its minimum at the edge of micro-laminated sheet. Residual stress in Ti layers and Ti-Al layers was compressive stress and tension stress respectively. With increasing of layer number or thickness ratio, compressive stress would rise gradually and compressive stress would reduce gradually.