The electroless nickel plated graphite fibers reinforced aluminum matrix composites (Gr(Ni)/Al) were produced by squeeze casting, and the microstructure of Gr(Ni)/Al composite and surface behavior of Ni-P coating were studied. The optimum process of electroless Ni-P plating included: burning to get rid of glue→degreasing→neutralization→acidulating→sensitizing→activation→electroless plating. The surface analysis results show that the electroless nickel plating can diffuse into the graphite fiber surface during the squeeze casting, and the Ni-P coating and aluminum alloys can produce brittle phase NiAl3 or NiAl. The X-ray diffraction(XRD) results indicate that Al4C3 is so little that no Al4C3 peaks are found, and the harmful hl4C3 can be decreased by the electroless plating Ni-P coating. The coating improves the interfacial bonding of continuous graphite fibers reinforced aluminum matrix composites.