Magnetoimpedance (MI) effect in stress-annealed Co-based amorphous ribbon was studied in the states without and in presence of the magnetic epoxy composite of cylindrical shape. Iron oxide FeOx magnetic microparticles of different concentrations (0–70 wt.%) were used as a magnetic filler. The condition of stress annealing (350 °C, 1 h and 250 MPa specific load) were selected in order to insure the high MI sensitivity with respect to external magnetic field in the field of a few Oersted. The MI responses were modified in the presence of the magnetic epoxy composites due to the contribution of the stray fields of embedded microparticles. It was experimentally found that degree of the MI curves modification depended on the microparticles concentration. The MI characteristics were also dependent on the length-to-width ratio of the MI element. The most sensitive MI element under study showed a linear dependence with a 1 %/weight percent microparticle concentration slope. Mathematical modeling using finite elements (FEM) protocol for the properties of short MI elements confirmed the results and highlighted the non-monotonic contribution of high-concentration composites to the MI responses.