Aluminum matrix composites (AMCs) are designed to enhance the performance of conventional aluminum alloys for engineering applications at both room and elevated temperatures. However, the dynamic phase-specific deformation behavior and load-sharing mechanisms of AMCs at elevated temperatures have not been extensively studied and remain unclear. Here, in situ neutron diffraction experiments are employed to reveal the phase-specific structure evolution of additively manufactured Al6061+TiC composites under compressive loading at 250 °C. It is found that the addition of a small amount of nano-size TiC significantly alters the deformation behavior and increases the strength at 250 °C in comparison to the as-printed Al6061. Unlike the two-stage behavior observed in Al6061, the Al6061+TiC composites exhibit three stages during compression triggered by changes in the interphase stress states. Further analysis of Bragg peak intensity and broadening reveals that the presence of TiC alters the dislocation activity during deformation at 250 °C by influencing dislocation slip planes and promoting dislocation accumulation. These findings provide direct experimental observations of the phase-specific dynamic process in AMCs under deformation at an elevated temperature. The revealed mechanisms provide insights for the future design and optimization of high-performance AMCs.