Buildings in regions of high seismicity are susceptible to severe damage and potential collapse due to large lateral displacements. The basic philosophy in seismic design of noncritical conventional reinforced concrete structures is to allow for yielding of steel to dissipate energy while encountering damage to unconfined concrete and permanent deformation due to plastic hinging.The target performance is to maintain structural integrity and avoid collapse. In accomplishing the performance objective, severe damage to structural components may occur, and the structure might not be serviceable after the earthquake. In this paper the response of RC frames using smart bars under static lateral loading has been numerically studied, using Finite Element Method. The material used in this study is Superelastic Shape Memory Alloys (SMAs) which are unique materials that have the ability to undergo large deformations, but can return to their undeformed shape by the removal of the stress. If such materials can be used as reinforcement in plastic hinge regions of frame elements, they will not only experience large inelastic deformations during strong earthquakes, but can also potentially recover their original shape. This behaviour will allow mitigating the problem of permanent deformation. Since Young's Modulus of this material is much lower than that of conventional steel reinforcement, it is not feasible and economical (due to relatively high price of Shape Memory Alloys) to replace the total steel with SMA bars. Therefore, different quantities of steel and smart rebars have been used for reinforcement. The behaviour of these frames has been compared with that of ordinary RC frames designed according to ACI code.