This paper presents a new approach for analyzing the microstructure of -reinforced aluminum matrix composites from digital images. Various samples of aluminum matrix composite were fabricated by hot pressing the powder mixtures with certain volume and size combinations of pure Al and SiC particles. Microstructures of the samples were analyzed by computer-based image processing methods. Since the conventional methods are not suitable for separating phases of such complex microstructures, some new algorithms have been developed for the improved recognition and characterization of the particles in the metal matrix composites.