Aluminum based composites find diverse applications due to their superior mechanical and physical properties. Aluminum matrix nanocomposites have been synthesized with Al3Fe nanocrystalline intermetallics reinforcement using the powder metallurgy route. The prepared composites have been characterized for various physical and mechanical properties such as density measurement, bulk hardness, compressive strength, and tribological properties. The theoretical coefficient of the linear thermal expansion has also been predicted. The composite shows a high strength to weight ratio and excellent wear resistance, along with a low coefficient of friction. The observed wear rate is superior to other composites irrespective of the load and sliding velocity chosen for the study and it continuously decreases withan increasing amount of dispersoid.