Complex nature of diagonal tension accompanied by formation of new cracks as well as closing and propagating preexisting cracks has deterred researchers to achieve an analytical and mathematical procedure for accurate predicting shear behavior of reinforced concrete, and there is the lack of a unique theory accepted universally. Shear behavior of reinforced concrete is studied in this paper based on recently developed constitutive laws for normal strength concrete and mild steel bars using nonlinear finite element method. The salient feature of these stress-strain relations is to account the interactive effects of concrete and embedded bars on each other in a smeared rotating crack approach. Implementing the considered constitutive laws into an efficient secant-stiffness based finite element algorithm, a procedure for nonlinear analysis of reinforced concrete is achieved. The resulted procedure is capable of predicting load-deformation behavior, cracking pattern, and failure mode of reinforced concrete. Corroboration with data from shear-critical beam test specimens with a wide range of properties showed the model to predict responses with a good accuracy. The results were also compared with those from the well-known theory of modified compression field and its extension called disturbed stress field model which revealed the present study to provide more accurate predictions.