This work describes the application and usefulness of the focused ion beam (FIB) technique for the preparation of transmission electron microscopy (TEM) samples from metal matrix composite materials. Results on an Aldiamond composite, manufactured by the squeeze casting infiltration process, were chosen for demonstration. It is almost impossible to prepare TEM specimens of this material by any other conventional method owing to the presence of highly inhomogeneous phases and reinforcement diamond particles. The present article gives a detailed account of the salient features of the FIB technique and its operation. One of the big advantages is the possibility to prepare site-specific TEM specimens with high spatial resolution. The artifacts occurring during the specimen preparation, for example, Ga-ion implantation, curtain effects, amorphous layers, bending of the lamella, or different milling behaviors of the materials have been discussed. Furthermore, TEM examination of the specimens prepared revealed an ultrafine amorphous layer of graphite formed at the interface between the Al and diamond particles that may affect the interfacial properties of the composite materials. This may not have been feasible without the successful application of the FIB technique for production of good quality site-specific TEM specimens.