The paper aims to improve the knowledge of the shear response in reinforced concrete and the influence of aggregate interlock using non-linear finite element analysis. The influence of aggregate types on shear response of concrete was studied with finite element analysis of reinforced concrete beams failed in shear. The influence of aggregate interlock was investigated using different smeared crack approaches, i.e. multi directional, fixed and rotating crack models. The results from analysis are verified with the result from mechanical testing with respect to stiffness, capacity and crack pattern.