Macro-elements are one of the powerful means in reducing number of equations to be solved in finite element analysis. In the proposed method several finite elements will be transformed into a single element called the macro-element. This is done by equating the potential energy of the macro-element to the potential energy of the equivalent finite elements. If the order of the macro-element function corresponds to the order of the structural behavior it models, an exact solution is achieved. In this study a beam-macro element and plate bending-macro element are developed. The developed macro-elements were tested and the results were compared with the results of conventional finite element solutions and with closed form solutions if available. Excellent results were achieved with substantial reduction in number of equations and computer time.