Aluminium alloy composites reinforced with aluminium borate whiskers (ABw), developed recently by SHIKOKU KASEI KOUGYOU Co. Ltd., Japan, were fabricated using squeeze casting. The large mismatch in the coefficients of thermal expansion (CTE) between the reinforcement material and the matrix can generate significant stress and strain in composites during thermal cycling or during fabrication of the composites when using squeeze casting. When a transmission electron microscope is used to irradiate a very small area of a thin film of the material with a convergent electron beam of several nm in diameter, High Order Laue Zone patterns (HOLZ patterns) are obtained. These HOLZ patterns can reveal fine strain fields in the reinforcement materials that are used in composites fabricated using squeeze casting. Each (001) plane in the ABw was rotated towards the  direction by up to 0.5°. With a unit of nearly 400 nm × 400 nm, each (100) plane was rotated towards the  direction in a corkscrew pattern. In addition the strain and the stress generated during the fabrication of the composites were estimated by using the finite element methods taking into account the anisotropics in both the CTE and the elastic modulus of the reinforcement material.