The micromechanical behaviour of Al2O3 short fibre reinforced Al-5.5Zn matrix composite has been in-situ studied by using TEM. The results show that in the composite the nucleation and propagation of cracks take place mainly in the matrix, as well as in the region near the fibre/matrix interface. It has been also observed that the microcracks can close during unloading.So the fracture property can be characterized by crack open displacement (COD). The cracking characteristic may result from the large strength difference between the matrix and fibre. The micromechanical behavior of Al2O3 short fiber reinforced Al-5.5 Zn matrix composite has been in-situ studied by using TEM. The results show that in the composite the nucleation and propagation of cracks take place mainly in the matrix, as well as in the region It has been observed that the microcracks can be close during unloading. The fracture property can be characterized by crack open displacement (COD). The cracking characteristic may result from the large strength difference between the matrix and fiber .