Friction stir processing (FSP) is a post-processing method that locally manipulates the microstructure by imparting a high level of energy in the solid state giving rise to improved mechanical properties. Additionally, FSP has emerged as an advanced tool to produce surface composites and synthesize the second phase into the matrix. In the current study, FSP was investigated for the manufacture of localized zones of composite materials made by the emplacement of a second phase into cast A206 Al alloy matrix. Both the discontinuously reinforced aluminum (DRA) and some encapsulated powders (nano-sized SiC or Ta) were used for the second phase emplacement. Through SEM and EDS mapping, the morphology and distribution of second phase particles have been studied. The work shows that friction stir processing is a viable means of producing localized composite zones in Al components.