Abstract: The special designed SEM in-situ tensile tests have been conducted to trace the whole process of crack initiation and propagation till to fracture in Al₂O₃ seeded P/M Rene 95 alloy And the distriblltion of stress and strain around inclusions has been calculated by means of an elasto-plastic finite element method (FEM) model with the commercial software ANSYS. The results show that the characteristic parameters of inclusions such as the size, position etc. have different effect on the tension process; and initiation and propagation of the crack at inclusion/medix interface are mainly determined by the stress distribulion of matrix in or near this region.