The effect of an inhomogeneous distribution of second phase particles on strength and damage has been studied here using a model system based on rapidly solidified Al–Cu alloys which result in Al–CuAl₂ composites, Materials with both a homogeneous and bimodal distribution of the CuAl₂ particles have been produced. When tested in compression (i.e. little or no damage) the clustered materials are significantly stronger than homogeneous alloys containing the same overall CuAl₂ volume fraction. These results are consistent with a previously published self-consistent model.