By means of different checks and measures, we observed and analysed the microstructure of Fe-Al/Al2 O3 composite material. We found that not only intragranular nanostructure grains and rod-like crystals but also fine-grained structure of the composite material as well as the bridging of the Fe-Al intermetallics compound contribute to the material's strength and toughness. It is shown that the strengthening and toughening of the Fe-Al/Al2 O3 composite is the joint effect of a multiplicate strengthening and toughening mechanism.