Aluminium matrix composites (AMCs) have gained considerable amount of research emphasis and attention in the present era. Research is being carried out across the globe to produce new combination of MMCs. MMCs are prepared by adding a variety of metal particles with monolithic alloys using several techniques. An attempt has been made to produce aluminum metal matrix composites reinforced with nickel (Al3Ni) particles by the in situ reaction and applying friction stir processing. When the specimen was stirred 2 passes, the formed Al3Ni was tiny to be detected. Al3Ni subsequently became apparent when stirring 4 passes and the fine Al3Ni particles were dispersed homogeneously in the composites The microstructures of the material were investigated. The results showed that the microstructures Friction stir zone were uniform and with small equiaxed grains in in-situ AMCs.