Aluminium alloy based metal matrix composites (AMMC) are widely used for sliding wear applications because of their excellent wear resistant properties. AMMC are fabricated using various methods like liquid state fabrication, solid state fabrication methods, etc. It was found that stir casting is an economical method to fabricate AMMC. In the present work, aluminium alloy 6061 reinforced with various percentages of Al2O3 particles (5, 10, 15 and 20 wt%) were prepared. At first the stir casting set up was prepared as per the requirement. The objectives of this research work are the fabrication and characterisation of AA 6061/ Al2O3 AMMC which was fabricated using stir casting process. The microstructures of AMMC were studied using scanning electron microscopy. Al2O3 particles were observed to refine the grains and were distributed homogeneously in the aluminium matrix. Al2O3 particles clusters were also seen in a few places.Al2O3 particles were properly bonded to the aluminium matrix. The reinforcement of Al203 particles improved the micro hardness and ultimate tensile strength of AMMC.