This work was focused on development of LM26 composites reinforced with Chromium Oxide particles by utilizing the technique of stir casting. Percentage of chromium oxide was varied between 0 to 10wt%. A study of the mechanical properties as well as microstructure of the developed composites had been performed. With the assistance of optical microscope, the microstructural studies of LM26 alloy as well as composites have been conducted. Investigations were carried out on the LM26 alloy as well as composites for properties such as tensile strength as well as hardness. Microstructure confirms that the chromium oxide particles' distribution has been uniform. The hardness of composites was found to higher than unreinforced alloy and increases over time as weight percentage increases of Chromium Oxide particles from 0% to 10%. For LM26/10% Chromium Oxide composite showed highest yield and tensile strength compared to other composites and unreinforced LM26 alloy. Keywords: Aluminium matrix composites, stir casting, Microstructure, Mechanical properties.