Aluminum matrix composites reinforced by Al62Cu26Fe12 gas atomized powders were produced by conventional metallurgical processes, such as gravity casting with stirring and hot extrusion. This investigation was mainly focused on the dependency of the yield stress at room temperature as a function of the volume fraction of reinforcement, but other variables such as the matrix, coating layer around the particles, and processing were also investigated. For as-extruded composites, the addition of the Al-Cu-Fe particles improved the yield stress, although not dramatically owing to the large particle size. In contrast, it was found that the yield stress was considerably enhanced for the as-cast composites up to 10%(AlCuFe)p, while an asymptotic value was observed afterward. The dominant parameter appeared to be the strength of the matrix, which was found to be proportional to the volume fraction of the reinforcement. These results are discussed in relation with the possible strengthening mechanisms in order to estimate the role of the icosahedral and related crystalline phases on the increase of yield stress.