An aluminium-nickel reinforced Al2O3 particulate composite was fabricated by a powder metallurgy route, where 35 wt % aluminium and 30 wt % nickel powders were mixed with 35 wt % Al2O3 particles and compacted at 548 MPa. Sintering was carried out at 850 degrees C, where the synthesis reaction, was sustained by the transient liquid phase resulting from the exothermic reaction associated with the formation of intermetallic compounds, i.e. reactive sintering. The resultant microstructure was studied using X-ray diffraction (XRD) and scanning electron microscopy coupled with energy dispersive spectroscopy (SEM-EDS). It was found that the initial distribution of individual constituent powders affect the outcome of the reactive sintering and that the inward diffusion of aluminium in nickel was responsible for nickel aluminide formation.