Ultrasonic Consolidation (UC) is a manufacturing technique based on the ultrasonic joining of a sequence of metal foils which are bonded to one another. Due to moderate pressures and low temperatures, UC operates as a solid-state process. This research investigates the use of UC to fabricate smart material structures by integration of sensors, actuators and reinforcement by means of different types of fibres such as Silicon Carbide (SiC). Previous problems with the optimal placement of fibres directly between foils have been identified. Research on new capabilities to consolidate fibres securely and more accurately during UC will be presented. Channels created by laser processing prior to UC within metal matrix composites are investigated as a method to aid the embedding of high volume fractions of different fibres in unison without damage. Laser processing is conducted with a Fiber laser which has been identified as a promising method to create narrow channels with regard to beam profile, spot size and focusing capability. Microstructural studies such as cross-sectioning perpendicular to the fibre axial direction have been carried out to observe secure integration such as the amount of plastic flow around fibres and potential voids.© (2011) COPYRIGHT Society of Photo-Optical Instrumentation Engineers (SPIE). Downloading of the abstract is permitted for personal use only.