An Al/Stainless Steel/Al lamellar composite was produced by roll bonding of the starting sheets at 400 °C. Afterward, the roll bonded sheet was cut in half and the accumulative roll bonding (ARB) process at room temperature was applied seven times. As a result, the central steel layer fractured and distributed in the Al matrix among different layers introduced by the repetition of roll bonding process. The tensile results showed that the roll bonded sheet has much higher strength and strength to weight ratio compared with the initial aluminum sheet as a result of the presence of continuous steel core. However, poor ductility properties were observed during tensile test, which were ascribed to the increasing deformation resistance and localized thinning of the central stainless steel sheet during the roll bonding process. The ARBed sample exhibited lower strength compared with the roll bonded sheet due to the breakup of stainless steel layer into many small segments. Anyway, an ultrafine grained microstructure with average grain size of 400 nm in the aluminum matrix and 71% strain-induced martensite in the steel segments were detected by the electron backscattered diffraction (EBSD) technique, which were found to be responsible for the enhancement of mechanical properties compared with the initial aluminum sheet.