The purpose of this work is to produce an aluminum metal matrix composite with high strength, low weight with good thermal resistance. For preparing metal matrix composite AA6061 is used as matrix and activated carbon is used as reinforcement and it is cast using modified stir casting technique. The reinforcement activated carbon is added in various weight ratios from 2% to 8% of the matrix. The casted metal matrix composites are taken as per ASTM standard by using wire cut process for various tests. Microstructural test like SEM, EDAX, XRD and thermal tests like Fourier Transform infrared spectroscopy and Thermogravimetric tests were taken .From testing results, it is noted that increase in the percentage of activated carbon up to 6%, shows a significant mixing of matrix and reinforcement it is evident in microstructure test result and also shows there is the formation of voids. Thermogravimetric proves the fabricated composite have good thermal resistance by adding activated carbon as reinforcement.