The photoelastic technique was used to analyze the stress field in glass fiber reinforced polymer matrix composite. Two glass fiber bundles with a diameter of 0.2 mm were reinforced in orthogonal directions. The composite was subjected to diametrical compression with two orientation of fibers with respect to the loading axis, i.e. 00/900 and 450/1350. A circular polariscope with dark-field arrangement was used to analyze the stress field. The isochromatic fringe pattern nearby fiber/matrix interface revealed that there was strong adhesion between the fiber and matrix. Distorted fringes were observed nearby fiber region which indicated efficient load transfer from matrix to the fiber. It was observed that composite with 450/1350 orientation of fibers showed more principal stress difference in the direction perpendicular to the loading axis.