In today's competitive world need has been increased towards development of low cost, efficient, lightweight, corrosion resistive, highly reflectivity, tough, conducive materials. Aluminium alloy composites are well known for its better thermal expansion coefficient, wear resistance, corrosion resistance and other mechanical properties. Composites are materials which are made up of two or more materials; when combined together it shares some properties of these combined elements. These combinations can be designed to have different properties like stiffness, resistance to impact or use in high temperature Environments. Nanocomposite is emerging as high strength advanced materials for the industrial applications that have potential of satisfying recent demands of advanced engineering applications. In this paper an attempt has been made to provide a brief review on aluminium and its alloy, aluminium matrix composites and nanocomposites, fabrication and characterization technology and to suggest a least expensive method for production of nanocomposites.