Isothermal oxidation of 6061 Al, reinforced with chopped carbon fibres and SiC particles, was studied to investigate the applicability of these composites in the temperature range 300–500 °C, in terms of their degradation due to oxidation. Carbon/aluminium composite suffered a tremendous loss in weight at 350 °C. The extent of the damage due to oxidation for SiC/Al composites depended upon the concentration of nucleation sites, which formed the interface between the composite and the matrix. The number of such sites depended upon the volume fraction and size of the dispersed particles. Analysis of the oxide scale was carried out using SEM/EDAX and X-ray diffraction. The deterioration in strength of the composites, due to oxidation, was determined by tensile testing of exposed specimens.