Aluminum-based Al/Al_2O_3 composites were fabricated by a powder-in sheath rolling method. A stainless steel tube with outer diameter of 12 mm and wall thickness of 1 mm was used as a sheath. A mixture of aluminum powder and Al_2O_3 particles of which volume content was varied from 5 to 20%, was filled in the tube by tap filling and then rolled by 75% reduction in thickness at ambient temperature. The rolled specimen was then sintered at 560°C for 0.5 h. The mixture of Al powders and Al_2O_3 particles was successfully consolidated by the sheath rolling. The Al/Al_2O_3 composite fabricated by the sheath rolling showed a recrystallized structure, while unreinforced Al powder compact fabricated by the same procedure showed a deformed structure. The unreinforced Al powder compact was characterized by a deformation (rolling) texture of which main component is 112<111>, while the Al/Al_2O_3 composite showed a mixed texture oi deformation and recrystallization. The sintering resulted in recrystallization in Al powder compact and grain growth in the composite.