The intermetallic compound NiAl has excellent potential for high temperature structural applications but suffers from low temperature brittleness and insufficient high temperature strength. One way to remove these deficiencies is the reinforcement by high strength ceramic fibers. Such intermetallic matrix composites can be conveniently fabricated by the hot pressing of matrix coated fibers. Al 2 O 3 single crystal fibers show excellent chemical stability with the NiAl matrix, but the residual thermal compressive stresses during cool down dramatically degrades the fiber strength and thus, renders the composite useless for structural applications. We report on an experimental and computational study to mitigate this problem and to fabricate Al 2 O 3 /NiAl composites with sufficient high temperature strength. Analytical TEM, mechanical testing and push-out tests were employed to characterize chemistry, microstructure and mechanical properties of the composites. It will be shown that a processing window exists that allows producing intermetallic matrix composites with promising mechanical properties.