Z-pinning can significantly improve the interlaminar shear properties of carbon fiber-reinforced aluminum matrix composites (Cf/Al). However, the effect of the metal z-pin on the in-plane properties of Cf/Al is unclear. This study examines the effect of the z-pin on the flexural strength and failure mechanism of Cf/Al composites with different volume contents and diameters of the z-pins. The introduction of a z-pin leads to the formation of a brittle phase at the z-pin/matrix interface and microstructural damage such as aluminum-rich pockets and carbon fiber waviness, thereby resulting in a reduction of the flexural strength. The three-point flexural test results show that the adding of a metal z-pin results in reducing the Cf/Al composites’ flexural strength by 2–25%. SEM imaging of the fracture surfaces revealed that a higher degree of interfacial reaction led to more cracks on the surface of the z-pin. This crack-susceptible interface layer between the z-pin and the matrix is likely the primary cause of the reduction of the flexural strength.