<p>Aluminium foam offers an exceptional strength-to-weight ratio and energy absorption capacity, but variations in the cell structure hinder its performance and limit industrial applications. The addition (<i>ex situ</i>) or formation (<i>in situ</i>) of specific particles during the processing of metal foams stabilizes the foam by restricting the cell coalescence and liquid drainage during foaming. In this study, we investigated the potential of <i>in situ</i> formed Al₃Zr particles to enhance the stability and properties of AA6061 closed-cell foams. The microstructure analysis revealed the presence of Al₃Zr particle clusters along the plateau borders, inhibiting cell coalescence and wall thinning. Consequently, the composite foams exhibited a 37 pct increase in plateau stress and a 56 pct increase in energy absorption capacity, with a 78.5 pct mean energy absorption efficiency compared with base AA6061 foams. The coefficient of thermal expansion mismatch of particles with the matrix is the primary strengthening mechanism, leading to a 12.9 pct improvement in the yield strength of the composite. The mesoscale <i>ex situ</i> compression test showed a brittle failure mode with premature cell fracture due to the formation of microcells and secondary phases within the cell edge region. The fractography revealed a mixed mode of ductile and brittle failure with debonding of the secondary phase network and fracture of <i>in situ</i> Al₃Zr particles.</p> Graphical Abstract <p></p>