This paper uses the perturbation method to study effective response of nonlinear cylindrical coated composites. Under the external AC and DC electric field E a (1+sin ωt), the local potentials of composites at all harmonic frequencies are induced. An effective nonlinear response to composite is given for the cylindrical coated inclusions in the dilute limit. This paper uses the perturbation method to study effective response of nonlinear cylindrical coated composites. Under the external AC and DC electric field E a (1 + sin ωt), the local potentials of composites at all harmonic frequencies are induced. An effective nonlinear response to composite is given for the cylindrical coated inclusions in the dilute limit.