Intermetallic compound matrix composites have been expected to be established as high temperature structural components. Ni3Al is a representative intermetallic alloy, which has excellent ductility even at room temperature by adding certain alloying elements. Ni3Al matrix composites with aluminum oxide particles, which are formed by the in-situ reaction between the alloy and aluminum borate whiskers, are fabricated by a powder metallurgical method. The addition of aluminum borate whiskers disperses the synthetic aluminum oxide particles during sintering and dramatically increases the strength of the composite. The uniform dispersion of reaction synthesized aluminum oxide particles and the uniform solution of boron in the matrix seem to play an important role in the improvement in strength. There is a dramatic increase in strength with the addition of the whisker, and the maximum value is obtained at a 10 vol% addition of whisker. The Ni3Al composite with 10 vol% aluminum oxide particles 0.3 μm in size and with 0.1 wt% boron powder fabricated by the conventional powder metallurgical process does not have such high strength because of inhomogeneous distribution of aluminum oxide particles and of boron. The tensile strength of the Ni3Al with a 10 vol% aluminum borate whisker reaches more than twice the value, 930 MPa, of the parent alloy. No third phase is observed between the aluminum oxide and the matrix.