Ceramic reinforced metals, despite superior properties such as specific stiffness, are often considered as too brittle for structural applications. We show that despite a high ceramic particle content (60 vol.%), aluminium matrix composites can be made to exhibit a fracture toughness matching that of unreinforced aluminium alloys, provided critical microstructural parameters are controlled. We here use an unconventional Al‐Ag matrix to simultaneously increase the strength and the toughness of this class of composite.