Alumina composite reinforced by chopped alumina fiber was fabricated by filter-pressing the fiber slurry followed by the infiltration of alumina slurry. The chopped fiber was coated with nickel by electroless plating method. The green samples were densified by hot-pressing. Microstructures were studied by SEM and the mechanical properties such as bending strength and fracture toughness were measured. The resulting mechanical properties were analyzed in relation with processing parameters such as preform density and resulting microstructures. The load-displacement curve of the specimen with Ni interlayer but without Ni inclusion showed brittle fracture mode due to the direct contact between matrix and fiber. The load-displacement curve of the specimen with Ni interlayer and Ni inclusion in the matrix which is introduced by high applied pressure during specimen preparation showed non-brittle fracture mode due to the fiber pull-out and dutile phases in the matrix.