Stresses near the end of an internal electrode in a multilayer electrostrictive ceramic actuator are studied in detail. A finite element program capable of overcoming two major difficulties is developed. The program solves both the mechanical and electrical coupling problem and the nonlinear electric field and electric displacement relationship for these materials. Results indicate that the stress difference between the coupled and the uncoupled cases can only be distinguished when a stress singularity is present. Tensile stresses are found both in front, and behind, the end of an internal electrode. The magnitude of the stresses is predetermined by the material constants.