A two or three phase aluminum alloy having high strength, modulus, ductility and toughness, comprising a fine grain matrix phase nano L12 alloy having a particle size ranging from about 20 nm to 5 microns and a more ductile larger aluminum alloy coarse grain phase having a particle size ranging from about 25 to 250 microns. The fine grain matrix phase alloy comprises aluminum, at least one of scandium, erbium, thulium, ytterbium, and lutetium; and at least one of gadolinium, yttrium, zirconium, titanium, hafnium, and niobium. The alloy may also include ceramic reinforcements in addition to the fine grain matrix phase and the coarse grain phase.