Interfacial regions in metal matrix composites are important in controlling the mechanical and thermal properties of these materials. An ultrahigh modulus fibre-reinforced magnesium alloy matrix composite has been studied, with particular attention paid to the interfacial and precipitate microstructures. Fibres were surface treated but uncoated prior to composite manufacture. Observations revealed that an interface consisting of polycrystalline magnesium oxide with occasional Mg 17 Al 12 (b) precipitate particles predominates. Discontinuous b particles formed at fibre surfaces, and continuous spherical and lamellar b precipitates nucleated at grain boundaries and fibre surfaces. High dislocation densities exist at the interface indicating matrix-yielding subsequent to manufacture and that a high mean residual compressive stress acts on fibres. The effect that the observed microstructural features has on composite properties and on interfacial bonding is discussed and compared to examples in the literature.