In this paper bending strength of spur gear teeth improved by increasing the fillet radius at root of the teeth. Spur gear geometry prepared using SolidWorks and imported in Ansys to analyse the stress and strain under specific loading condition. The fillet radius at root of teeth was increased from 0.15mm to 0.75mm with an increment of 0.15mm each time. With the increase in fillet radius of gear teeth, decrement of Von-mises stress, Von-mises strain and deformation of spur gear tooth is achieved indicating the improvement in bending strength of gear teeth. Metal matrix composite of Aluminium and Silicon Carbide is used as material for spur gear because of its good strength to weight ratio, low density, excellent castability and corrosion resistance. To verify the effect of fillet radius on strength of spur gear; stress, strain and deformation was found by increasing the load up to yielding limit of the material. The optimum value for the fillet radius at high loading condition achieved by graphical comparison.