A finite element based microstructural modeling for the size dependent strengthening of particle reinforced aluminum composites is presented. The model accounts explicitly for the enhanced strength in a discretely defined "punched zone" around the particle in an aluminum matrix composite as a result of geometrically necessary dislocations developed through a CTE mismatch. The density of geometrically necessary dislocations is calculated considering volume fraction of the particle. Results show that predicted flow stresses with different particle size are in good agreement with experiments. It is also shown that 0.2% offset yield stresses increases with smaller particles and larger volume fractions and this length-scale effect on the enhanced strength can be observed by explicitly including GND region around the particle. The strengths predicted with the inclusion of volume fraction in the density equation are slightly lower than those without.