Transient dynamic response of magnetoelectroelastic sensors bonded to a mild steel beam using 3D magnetic vector potential approach is presented in this paper. The electric field induced by time varying magnetic field is nonconservative and can be described by electric scalar potential and magnetic vector potentials. The aim of the study is to find how different volume fractions of the composite behave in sensor applications at locations on the structure where maximum strain is induced subjected to different boundary conditions. The 3D beam and the sensor is modeled using eight nodded brick elements and the beam is subjected to dynamic loading with clamped-free and clamped-clamped boundary conditions. A perfect bonding between the mild steel beam and the sensor is assumed and the present study ignores the potential noise effects which come across during experiments. The maximum value of electric potential and the dominating component of magnetic potential corresponds to vf =0.2 of the composite. The sensor is placed at the middle of a clamped-clamped beam, vf =0.4 gives noticeably higher values of magnetic potential. © 2011 IEEE.