A method of forming an aluminum alloy having high strength, ductility and toughness, the method comprising: (a) forming an alloy powder consisting of: at least one metal selected from the group consisting of: 1 to 8 weight percent of magnesium and 1 to 10 weight percent of nickel; at least one first element selected from the group consisting of: 0.1 to 6 weight percent erbium, 0.1 to 10 weight percent thulium, 0.1 to 15 weight percent ytterbium, and 0.1 to 12 weight percent lutetium; at least one second element selected from the group consisting of: 0.1 to 4 weight percent gadolinium, 0.1 to 4 weight percent yttrium, 0.05 to 1 weight percent zirconium, 0.05 to 2 weight percent titanium, 0.05 to 2 weight percent hafnium, and 0.05 to 1 weight percent niobium; optionally at least one element selected from: 3 to 12 weight percent zinc; 0.2 to 3 weight percent copper; 0.5 to 3 weight percent lithium; and 4 to 25 weight percent silicon; optionally comprising at least one of: 0.001 to 0.1 weight percent sodium, 0.001 to 0.1 weight percent calcium, 0.001 to 0.1 weight percent strontium, 0.001 to 0.1 weight percent antimony, 0.001 to 0.1 weight percent barium, and 0.001 to 0.1 weight percent phosphorus; comprising no more than 0.1 weight percent iron, 0.1 weight percent chromium, 0.1 weight percent manganese, 0.1 weight percent vanadium, 0.1 weight percent cobalt, and 0.1 weight percent nickel; comprising no more than 1 weight percent total impurities; and the balance being aluminum with unavoidable impurities; (b) adding at least one ceramic selected from the group consisting of: 5 to 40 volume percent aluminum oxide, 5 to 40 volume percent silicon carbide, 5 to 40 volume percent aluminum nitride, 5 to 40 volume percent titanium diboride, 5 to 40 volume percent titanium boride, and 5 to 40 volume percent titanium carbide; (c) consolidating the powder and ceramic to form the alloy; and melting the alloying elements together, mixing with ceramic reinforcements, solidifying the melt to form a solid body, and heat treating the solid body; wherein the solidifying comprises a rapid solidification process in which the cooling rate is greater than 10 3 °C/second; and wherein the heat treating comprises: solution heat treatment at 800°F (426°C) to 1100°F (593°C) for thirty minutes to four hours; quenching; and aging at 200°F (93°C) to 600°F (315°C) for two to forty-eight hours. (a) forming an alloy powder consisting of: at least one metal selected from the group consisting of: 1 to 8 weight percent of magnesium and 1 to 10 weight percent of nickel; at least one first element selected from the group consisting of: 0.1 to 6 weight percent erbium, 0.1 to 10 weight percent thulium, 0.1 to 15 weight percent ytterbium, and 0.1 to 12 weight percent lutetium; at least one second element selected from the group consisting of: 0.1 to 4 weight percent gadolinium, 0.1 to 4 weight percent yttrium, 0.05 to 1 weight percent zirconium, 0.05 to 2 weight percent titanium, 0.05 to 2 weight percent hafnium, and 0.05 to 1 weight percent niobium; optionally at least one element selected from: 3 to 12 weight percent zinc; 0.2 to 3 weight percent copper; 0.5 to 3 weight percent lithium; and 4 to 25 weight percent silicon; optionally comprising at least one of: 0.001 to 0.1 weight percent sodium, 0.001 to 0.1 weight percent calcium, 0.001 to 0.1 weight percent strontium, 0.001 to 0.1 weight percent antimony, 0.001 to 0.1 weight percent barium, and 0.001 to 0.1 weight percent phosphorus; comprising no more than 0.1 weight percent iron, 0.1 weight percent chromium, 0.1 weight percent manganese, 0.1 weight percent vanadium, 0.1 weight percent cobalt, and 0.1 weight percent nickel; comprising no more than 1 weight percent total impurities; and the balance being aluminum with unavoidable impurities; at least one metal selected from the group consisting of: 1 to 8 weight percent of magnesium and 1 to 10 weight percent of nickel; at least one first element selected from the group consisting of: 0.1 to 6 weight percent erbium, 0.1 to 10 weight percent thulium, 0.1 to 15 weight percent ytterbium, and 0.1 to 12 weight percent lutetium; at least one second element selected from the group consisting of: 0.1 to 4 weight percent gadolinium, 0.1 to 4 weight percent yttrium, 0.05 to 1 weight percent zirconium, 0.05 to 2 weight percent titanium, 0.05 to 2 weight percent hafnium, and 0.05 to 1 weight percent niobium; 3 to 12 weight percent zinc; 0.2 to 3 weight percent copper; 0.5 to 3 weight percent lithium; and 4 to 25 weight percent silicon; the balance being aluminum with unavoidable impurities; (b) adding at least one ceramic selected from the group consisting of: 5 to 40 volume percent aluminum oxide, 5 to 40 volume percent silicon carbide, 5 to 40 volume percent aluminum nitride, 5 to 40 volume percent titanium diboride, 5 to 40 volume percent titanium boride, and 5 to 40 volume percent titanium carbide; (c) consolidating the powder and ceramic to form the alloy; and solution heat treatment at 800°F (426°C) to 1100°F (593°C) for thirty minutes to four hours; quenching; and aging at 200°F (93°C) to 600°F (315°C) for two to forty-eight hours.