The ageing response of 2124 Al-SiC particulate metal-matrix composite (MMC) and unreinforced alloy has been examined using hardness measurements and Arrhenius analysis. The formation of phases during precipitation has been studied using differential scanning calorimetry (DSC). The MMC exhibits accelerated ageing compared to unreinforced alloy, due to enhanced S’ formation. The activation energy for diffusion is lower in the MMC than in the unreinforced alloy. DSC scans show Guinier-Preston B (GPB) zone nucleation to occur at a lower temperature in the MMC, whilst the total volume of GPB zones formed is smaller than in the unreinforced alloy. A model has been proposed to explain the GPB zone formation behaviour, in which ease of GPB zone nucleation varies within the MMC, as a function of ageing time and of position within the matrix. S’ formation is enhanced in the MMC because of improved diffusion and a large increase in density of heterogeneous nucleation sites compared to the unreinforced alloy.