M40 carbon fibre reinforced rare earth magnesium alloy ZM6 composites with fibre volume fraction about 60% were fabricated by pressure infiltration method. The microstructure, interfacial morphology, and precipitation were studied by scanning electron microscopy, transmission electron microscopy, and energy dispersive X-ray spectrometer. It was shown that the interfaces between Mg alloy and fibres were well bonded and free from cracks. The Mg12Nd phase was preferentially precipitated at the fibre/matrix interfaces, leading to the segregation of Nd at the interfaces and the dramatic decrease of Mg12Nd precipitation in the matrix far from interfaces. Crystal defects such as high-density dislocations and twins were observed in the matrix near the fibre/matrix interface. A high bending strength (1393 MPa) and elastic modulus (190 GPa) were achieved in M40/ZM6 composite. M40 carbon fiber reinforced rare earth magnesium alloy ZM6 composites with fiber volume fraction about 60% were fabricated by pressure infiltration method. The microstructure, interfacial morphology, and precipitation were studied by scanning electron microscopy, transmission electron microscopy, and energy dispersive X-ray spectrometer . It was shown that the interfaces between Mg alloy and fibers were well bonded and free from cracks. The Mg12Nd phase was preferentially precipitated at the fiber / matrix interfaces, leading to the segregation of Nd at the interfaces and the dramatic decrease of Mg12Nd precipitation in the matrix far from interfaces. Crystal defects such as high-density dislocations and twins were observed in the matrix near the fiber / matrix interface. A high bending strength (1393 MPa) and elastic modulus (190 GPa) were achieved in M40 / ZM6 composite .