In this paper the investigations of magnetostriction as well as DC magnetic properties for composites doped with Terfenol-D particles are presented. All investigations were performed for the materials with 35%, 46% and 70% volume fraction of the Terfenol-D particles surrounded by epoxy matrix. Moreover, the bulk Terfenol-D alloy was tested. The obtained results show that the magnetization of the composite materials increases with increasing the volume fraction of Terfenol-D particles. Similar dependence as for magnetization was observed for the magnetostriction measurements. Although the magnetostriction of composite material is smaller than for solid Terfenol-D it is still tens of times bigger than in case of traditional magnetostrictive materials. Obtained results gives opportunity to use these materials for variety applications such as actuators and sensors.