In this work we computationally simulate the effect of microstructure on elastic and magnetostrictive properties of Terfenol-D (Tb 0.27 Dy 0.73 Fe 2 ) by means of Finite Element Method. The simulations successfully reproduce the theoretical and experimental Young's modulus and magnetostrictive coefficient of polycrystalline Terfenol-D. In the linear elastic regime, the crystal orientation distribution of the grains influences much more on the properties than the morphology of the grains. A correlation between the dispersion angle of the oriented growth crystal directions (< 011 > and < 111 >) and magnetoelastic performance is obtained. At low dispersion angles, an effective macroscopic uniaxial magnetocrystalline anisotropy is found along the oriented growth crystal direction.