An attempt has been made to improve the interfacial strength of AlSiC composites which are widely used in defense and automotive sectors. Enhancement of interfacial strength is studied by radial crushing of composites reinforced with electroless nickel coated SiC particled and manufactured by powder metallurgy process. It was visualized that ultimate breaking load for electroless Nickel coated SiC reinforcement has increased by 40 % with respect to uncoated reinforcement. XRD data confirmed the existence of Nickel in Aluminium matrix. SEM studies revealed the incorporation of Nickel with Aluminium and Silicon carbide. Because of improved interfacial strength and microhardness values the so obtained composites can be used for heavy machineries as an alternate to monolithic alloys.