The formation of nano-sized alumina-titanium carbide (Al2O3-TiC) composite powders from a carbon-coated titanium dioxide-aluminum (TiO2-Al) mixture was investigated. The carbon-coated TiO2-Al mixture altered the mechanism of the reaction, compared with standard mixtures, to produce high-quality nano-sized Al2O3-TiC powders. Data synthesized from intermediate temperatures indicate that these products form via Ti2O3 and Al3Ti. TEM images of the Al2O3-TiC powders showed fine size (50-100 nm), narrow size distribution, and lack of agglomeration. DSC data for the carbon-coated TiO2-Al mixture showed a single endothermic and four successive weak exothermic reactions as the carbon coating moderated the heat release during the reaction.