The problem of a circular elastic inclusion perfectly bonded to a matrix of infinite extent and subjected to arbitrarily thermal loading has been solved explicitly in terms of the corresponding homogeneous problem based on the inversion and Kelvin's transformation. It is to be noted that the relations established in this paper between the stress functions are algebraic and do not involve integration or solution of some other equations. Furthermore, the transformation leading from the solution for the homogeneous problem to that for the heterogeneous one is very simple, algebraic and universal in the sense of being independent of loading considered. The case of two bonded half-planes is obtained as a limiting case.