A two-scale (micro-to-macro) analysis is presented for the prediction of the response of thermo-electro-magneto-elastic composites with localized damage which are subjected to remote heat flow. The localized damage may represent cracks, inclusions, and cavities. The present analysis generalizes a previous one which predicted the behavior of such composites to remote electro-magneto-elastic loadings. Consequently, the present generalization enables the application of any form of combined loading including remote heat flow. The present generalization necessitates the introduction of the heat equation. For an insulated (adiabatic) crack, the heat equation solution must satisfy the requirement that zero heat flux should be imposed on its surfaces (in addition to the electric, magnetic, and elastic boundary conditions on these surfaces). Thus, the present analysis involves spatially varying thermal, electric, magnetic, and elastic interacting fields. In the special case of applied heat flow, the present approach is capable of predicting the created electric, magnetic, and elastic field distributions in the composite. Verifications of the method are presented, and applications are given for thermo-magneto-electro-elastic composites with cracks and cavities. The method is also illustrated in the cases of porous and layered composites with cracks that are subjected to heat flow.