Titanium aluminide composite reinforced with in situ formed submicron Al2O3 has been prepared by a reactive hot press method using Cr2O3, Al and Ti powder as starting materials. The reaction synthesis processing is particularly investigated. Results show that the matrix of the as-prepared material is a mixture of TiAl and a small amount of Ti3Al and Cr containing phase. Fine Al2O3 particles that act as reinforcing phase are dispersed along the interface of the matrix. The formation of TiAl/Al2O3 composite involves many transitional stages. Firstly, TiAl3 and Ti3Al intermediates were produced, then reducing reaction of Cr2O3 by Al formed Al2O3, and finally, the competitive solid-state diffusing reactions among Ti3Al, TiAl and TiAl3 produced the matrix phases of the TiAl/Al2O3 composite.