A ceramic-reinforced aluminum matrix composite is formed by contacting a molten aluminum-magnesium alloy with a permeable mass of ceramic material in the presence of a gas comprising from about 10 to 100% nitrogen, by volume, balance non-oxidizing gas, e.g., hydrogen or argon. Under these conditions, the molten alloy spontaneously infiltrates the ceramic mass under normal atmospheric pressures. A solid body of the alloy can be placed adjacent a permeable bedding of ceramic material, and brought to the molten state, preferably to at least about 700.degree. C., in order to form the aluminum matrix composite by infiltration. In addition to magnesium, auxiliary alloying elements may be employed with aluminum. The resulting composite products may contain a discontinuous aluminum nitride phase in the aluminum matrix and/or an aluminum nitride external surface layer.