Aluminium titanate($Al_2TiO_5$) has extremely anisotropic thermal expansion properties in single crystals, and polycrystalline material spontaneously microcracks in the cooling step after sintering process. These fine intergranular cracks limit the strength of the material, but provide an effective mechanism for absorbing strain energy during thermal shock and preventing catastrophic crack propagation. Furthermore, since machinable BN-ceramics used as an insulating substrate in current micro-electronic industry are very expensive, the development of new low-cost machinable substrate ceramics are consistently required. Therefore, cheap $Al_2TiO_5$-machinable ceramics was studied for the replacement of BN ceramics. $Al_2O_3-Al_2TiO_5$ ceramic composite was fabricated via in-situ reaction sintering. $Al_2O_3$ and $TiO_2$ powders were mixed with various mol-ratio and sintered at 1400 to $1600^{circ}C$ for 1 h. Density, hardness and strength of sintered ceramics were systematically measured. Phase analysis and microstructures were observed by XRD and SEM, respectively. Machinability of each specimens was tested by micro-hole machining. The results of research showed that the $Al_2TiO_5$-composites could be used for low-cost machinable ceramics.