Electroless plating are used to coat SiC particles as reinforcement to produce Al/SiCp metal matrix composites by powder metallurgy method. Nitride Acid (HNO3), aluminum and magnesium were used in solutions to coat the surface of SiC particles by metal oxide deposition. The magnesium was added 0.02 and 0.25 grams into the solution. The coating layer will improve the wetting system between Al and SiC. Aluminum and SiC coated powder were compacted at pressure of 15 kN, then sintered at 600°C for 2, 4 and 6 hours. All samples then were characterized both mechanical properties and microstructural analysis. It is observed that metal oxide deposition with 0.02 gram of Mg was more homogeneous than 0.25 gram of Mg. The microstructures of SiC-coated is analysed by high resolution of scanning electron microscope (SEM) and X-ray Diffraction (XRD). The results show that a metal oxide-substrate bonding action takes place during plating and XRD confirm that spinal phases are found during sintering. The compatibility of Al/SiCp composite which reinforced by SiC coating increased. The compressive strength increased after sintering at 600°C for 6 hours. This is evident that electroless metal oxide deposition on SiCp particles plays an important role in increasing adhesion strength between the SiC particles and matrix aluminum to produce Al/SiC p composites.