Abstract. For scalar and vector-valued elliptic boundary value problems with discontinuous coefficients across geometrically complicated interfaces, a composite finite element approach is developed. Composite basis functions are constructed, mimicking the expected jump condition for the solution at the interface in an approximate sense. The construction is based on a suitable local interpolation on the space of admissible functions. We study the order of approximation and the convergence properties of the method numerically. As applications, heat diffusion in an aluminum foam matrix filled with polymer and linear elasticity of micro-structured materials, in particular specimens of trabecular bone, are investigated. Furthermore, a numerical homogenization approach is developed for periodic structures and real material specimens which are not strictly periodic but are considered as statistical prototypes. Thereby, effective macroscopic material properties can be computed.Key words. composite finite elements, homogenization, elliptic partial differential equations, discontinuous coefficients AMS subject classifications. 65M60, 65N30, 74S05, 74Q05, 80M401. Introduction. Simulations in materials science or bio-medical applications are frequently faced with multi-phase materials having interfaces of complicated structure. Examples are heat conduction in chip design [26], the elastic behavior of composite materials [59], electric fields in the human body [85] in the context of electrocardiography [30], the brain shift in neurosurgery [82], and effects of vertebroplasty on macroscopic properties of trabecular microstructure [46]. The standard finite element (FE) procedure in this context is to generate a geometrically complicated simplicial (i.e. triangular or tetrahedral in 2D or 3D, respectively) FE mesh that resolves the interface between the different materials. On these meshes standard FE basis functions are used for the discretization of the physical quantities. However, generating 3D meshes suitable for FE simulations is difficult [13,75,69] and may require substantial user interaction.Composite Finite Elements. Composite finite elements (CFE) are based on the idea of incorporating the geometric complexity of physical domains [34,33,35,61] or interfaces between subdomains with different material properties [65] into the shape of basis functions rather than in the FE mesh. A corresponding multigrid method has been investigated in [65]. The term 'composite' has also appeared in the FE literature in Composite Triangles [31,76]. Like our approach presented here, these methods also use a virtual subdivision of tetrahedral elements, however, not as an adaptation to the geometry of the underlying domains.The approach presented in this paper is based on [65] for 2D problems. We extend this construction to 3D anisotropic PDE and as a vector-valued problem to 3D linearized elasticity. In fact, we construct the composite element method in case of level set described domains, where the level set functions is given an underly...