Friction Stir Processing (FSP) has been emerging as a solid state technique to fabricate aluminium composites in recent years. In present work, FSP is applied to AL6082/ Ti-Ni in order to analyze the effect of Ti-Ni on the microstructure, homogeneity and mechanical properties. A single pass of FSP was carried out at 1120 R.P.M. rotational speed, with travel speed of 25mm/min and an axial force of 10 KN to produce composition. Alloying elements were added to three volume fractions as 5%, 6.25%, and 7%. The microstructure was studied using scanning electron microscopy (SEM). Various phases were identified by X-ray diffraction (XRD) the results shows grain size refined, micro hardness increases substantially, effect of alloying element %age on grain size is also reported in this paper.