The present invention is related to a method of fabricating an aluminum matrix composite by a simple process of heating a mixture of a ceramic reinforcing phase and aluminum in nitrogen containing atmosphere and an aluminum matrix composite fabricated by the same. The aluminum matrix composite may be fabricated by heating to temperatures even lower than the melting temperature of aluminum as well as to temperatures higher. The exothermic nitridation reaction contributes to the melting of the aluminum matrix and the aluminum nitride formed in-situ as a result may act as an additional reinforcing phase.