Two types of aluminum-steel fiber composite were prepared by a casting method; one was fabricated with aluminum-coated steel fiber, and the other the aluminum-uncoated steel fiber. Then the mechanical properties and plastic behaviors of these composites were investigated by Instron machine. The ultimate tensile strength of aluminum-uncoated steel fiber composite increases linearly with increasing fiber content. However, the values of the composite tensile strength do not agree with the theoretical values indicated by the rule of mixture. The aluminum-uncoated steel fiber composite shows a better combination of tensile strength and elongation than the aluminum-coated steel fiber composite, though the bond between fiber and matrix of the former composite is poorer than that of the latter. This is considered to be attributed to the intermetallic compound formed on the surface of the aluminum-coated steel fiber, which is brittle and acts as a crack nucleation source during plastic deformation.