Nature and mechanism of interfacial reactions between boron nitride nanotubes (BNNTs) and aluminum matrix at high temperature (650 °C) are studied using high-resolution transmission electron microscopy (HRTEM). This study analyzes the feasibility of the use of BNNTs as reinforcement in aluminum matrix composites for structural application, for which interface plays a critical role. Thermodynamic comparison of aluminum (Al)-BNNT with analogous Al-carbon nanotube (Al-CNT) system reveals lesser amount of reaction in the former. Experimental observation also reveals thin (∼7 nm) reaction-product formation at Al-BNNT interface even after 120 min of exposure at 650 °C. The spatial distribution of the reaction-product species at the interface is governed by the competitive diffusion of N, Al, and B. Morphology of the reaction products are influenced by their orientation relationship with BNNT walls. A theoretical prediction on Al-BNNT interface in macroscale composite suggests the formation of strong bond between the matrix and reinforcement phase.