This work is aimed at developing understanding of ductile phase toughening in powder-processed intermetallic γ-TiAl alloys. The nominally ductile phases studied include Nb and Ti6Al4V, in the form of pancake shaped particles. Toughening is primarily due to the formation of crack face bridging zones. Toughness increases in the composites with a Ti6Al4V phase are limited due to particle embrittlement during processing. In this case, toughening is associated with the formation of short, low ductility/high strength bridge zones. Larger toughness increases and significant resistance curves are observed in composites containing Nb particles. In this case, long, high ductility/low strength bridge zones are observed. The behavior of the Nb composites is consistent with current understanding of constrained deformation of embedded particles and bridge zone toughening models. Additional toughening was observed in the Nb composites due to crack deflection and blunting in orientations where the crack intersects the broad pancake face.