By incorporating the Taylor-based nonlocal theory of plasticity, the finite element method (FEM) is applied to investigate the effect of particle size on the deformation behavior of the metal matrix composites. In the simulation, the two-dimensional plane strain and random distribution multi-particles model are used. It is shown that, at a fixed particle volume fraction, there is a close relationship between the particle size and the deformation behavior of the composites. The yield strength and plastic work hardening rate of the composites increase with decreasing particle size. The predicted stress-strain behaviors of the composites are qualitative agreement with the experimental results.