Experimental research was conducted to investigate the structural behavior of concrete-encased composite beams. Specimens were tested under lateral loading. The test results indicate that the behavior and failure mode of the beam are greatly affected by the steel beam core. The beams showed highly ductile behavior. The design flexural strength of concrete-encased beams is calculated from both the elastic and plastic stress distribution on the composite section. The deflection at the mid-span of the beam cannot be well predicted using linear elastic theory.