A composite containing both beta-eucryptite particles and aluminum borate whiskers was fabricated by a squeeze casting technique. The microstructure of the composite was investigated. Interesting phenomena of beta-eucryptite were observed in the composite using transmission electron microscopy (TEM). These phenomena include two steps: a degradation which results in the crystal phase of beta-eucryptite turning into amorphous phase, and a further phase transformation from amorphous material to the minicrystal of LiAlO2. The phase transformations were investigated by TEM and selected area electron diffraction pattern (SADP). The reasons for these phenomena were discussed. (C) 2003 Elsevier B.V. All rights reserved.