Composites are most promising materials of recent interest. Metal matrix composites (MMCs) possess significantly improved properties compared to unreinforced alloys. There has been an increasing interest in composites containing low density and low cost reinforcements. Hence, composites with fly ash as reinforcement are likely to over come the cost barrier for wide spread applications in automotive and small engine applications. AA 2024 alloy – 2 to 10% (by weight) fly ash composites were made by stir casting route. Phase identification and structural characterization was carried out on fly ash by X-ray diffraction studies. Scanning electron microscopy and optical microscopy was used for microstructure analysis. The hardness, density and compression tests were carried out on all these alloy and composites. The SEM studies reveal that there was a uniform distribution of fly ash particles in the matrix phase and also very good bonding exists between the matrix and reinforcement. With increasing the amount of fly ash the density of the composites was decreased and the hardness was increased. The increase in compression strength was observed with increase in amount of fly ash.