Aluminum matrix composites (AMCs), reinforced with novel pre-synthesized Al/CuFe multi-layered core- shell particles, were fabricated by different consolidation techniques to investigate their effect on microstructure and mechanical properties. To synthesize multi-layered Al/CuFe core-shell particles, Cu and Fe layers were deposited on Al powder particles by galvanic replacement and electroless plating method, respectively. The core-shell powder and sintered compacts were characterized by using X-ray diffraction (XRD), scanning electron microscopy (SEM) equipped with energy dispersive spectroscopy (EDX), pycnometer, microhardness and compression tests. The results revealed that a higher extent of interfacial reactions, due to the transformation of the deposited layer into intermetallic phases in spark plasma sintered composite, resulted in high relative density (99.26%), microhardness (165 HV_0.3) and strength (572 MPa). Further, the presence of un-transformed Cu in the shell structure of hot-pressed composite resulted in the highest fracture strain (20.4%). The obtained results provide stronger implications for tailoring the microstructure of AMCs through selecting appropriate sintering paths to control mechanical properties.