In the present research, a new composite material was developed for increased strength and tribological performance. The gadolinium silicon-germanium compound, GSG, was synthesized into an aluminum substrate to form a composite (GSG-Al). Experimental investigation indicated that the phase transformation of the GSG at its Curie temperature induced significant changes in crystal structures resulting in a giant strain effect. Such an effect increased the wear resistance at a temperature range from −25 °C to 150 °C. The built-in and “self-strengthening” property of such a material is highly desirable for tribological applications. In this manuscript, details of material synthesis, characterization, mechanical, and tribological behavior will be discussed.