A novel approach to produce Al-2 vol.% graphite nanocomposites using micron-sized graphite particles has been reported using conventional stir casting technique combined with ultrasonic treatment. Microstructural observations indicate that the visible agglomerations and porosities are significantly reduced after ultrasonic treatment. Transmission electron microscopy studies of ultrasonic-treated composites reveal that the size of the graphite particles is reduced substantially and its morphology is transformed into flake type structures. The width of the graphite flakes is reduced markedly with the increase in ultrasonic processing time and it is found to be in the range of 100-120 nm with an aspect ratio of 8.83 after 5 min of ultrasonication. Added to that, considerable improvement in the hardness values are noted for ultrasonic-treated Al-2 vol.% graphite composites when compared to conventional untreated composites. The mechanism behind the significant reduction in graphite particle size and porosity, uniform distribution of graphite particles and hardness increments are discussed. © 2015, ASM International.