This work aims to study the effect of annealing, normalizing and tempering on optical microstructure, microhardness and roughness of Al-4Ti and its composite with 1 wt% MgO. The heat treatments were achieved at 500 oC. The results showed that normalizing and tempering led to decreasing the presence of main phase in Al-Ti alloy which is Al3Ti through breaking up the phase in alloy, while the heat treatment led to enhance this phase in composite due to the incorporation between MgO and Al2O3 (which formed by convert aluminum to it) to form MgO.Al2O3. Therefore, in the optical examination of tempered Al-4Ti/MgO can be seen coarse Al3Ti platelet particles in addition to MgO particles. Microhardness highly influenced by heat treatments, the base alloy had microhardness more than composite with MgO before heat treatment due to presence of porosity which can occur due to the difficulty in the wetting of the ceramic-based reinforcement elements by the matrix material Al. While heat treatments made the microhardness of composite is more than that for alloy due to the broken in hard intermetallic (Al3Ti) in Al matrix. The data of roughness were higher for base alloy than composite due to decreasing and increasing the presence of Al3Ti phase in alloy and composite respectively.