In the present investigation Ni particles were added in varying weight fractions (0.5, 1.0 and 1.5%) to AA6061 alloy during stir casting. To prepare Al-Ni intermetallic reinforced Aluminium Metal Matrix Composites (Al MMCs), as-cast samples were subjected to T6 treatment (Solutionization at 550°C followed by ageing at 2,4,6,8 and 10 hours). Base alloy was also subjected to T6 treatment for comparison purpose. Hardness of the samples were obtained using Vickers hardness test. Samples in the peak aged (T6) condition were subjected to metallographic examination. Influence of Ni particles on the hardness and grain refinement was investigated. X-ray Diffraction analysis of the Ni added samples revealed the presence of Al-Ni intermetallic phase formation in the peak aged (T6) Condition. Scanning Electron Microscope – Energy Dispersive X-Ray Spectroscopy analysis of composites in the peak aged (T6) condition were carried out to study the formation of the Al-Ni intermetallic phase. Effect of Al-Ni intermetallic phase on wear and friction behavior of the composite samples were studied and compared with that of the base alloy in the peak aged (T6) condition.