The Ti50Ni25Cu25 particle/Al composite was fabricated with 30 vol.% Ti50Ni25Cu25 particles by hot pressing and followed by extruding methods. The internal friction (IF) measurements of the composite were carried out on an inverted torsion pendulum. Ti50Ni25Cu25 particles embedded in Al matrix improve the damping capacity of the composite. The internal friction behavior of Ti50Ni25Cu25 particles is consistent to that of the Ti50Ni25Cu25 bulk material. The mismatch of thermal expansion coefficients between Ti50Ni25Cu25 and Al contributes to the damping capacity of the composite. A high damping capacity of the composite could be obtained at low vibration frequency and large vibration amplitude.