Using Ti, Al and Cr2O3 as starting materials, Al2O3 particulate reinforced TiAl composites have been fabricated by in-situ reaction synthesis method. Effects of the Cr2O3 addition on the microstructures and mechanical properties of the TiAl/Al2O3 composites were investigated in detail. The results show that the composites have a matrix of TiAl, Ti3Al, and minor Cr containing phases, and a second reinforcement Al2O3. The addition of Cr2O3 effectively refined the structure of the matrix, and as a result, the mechanical properties of TiAl composites are improved. At Cr2O3 7.36 wt%, the flexural strength and fracture toughness reach the maximum values of 634.62 MPa and 9.79 MPa·m1/2, which are increased by 80% and 30%, respectively. The strengthening mechanism is also discussed.