In metal matrix composites (MMC) development, arc melting furnaces facilitate the blending of metals with ceramics to create high-strength materials with high stiffness. Precise process parameter control and homogenization ensures the desired properties are uniformly distributed throughout the composite. TiB₂ is a popular choice for modification of Ti alloys due to the in-situ formation of TIB phase. Phase transformation and precipitation during the additive manufacturing process can cause cracking due to additional stresses which accumulate in addition to thermal stresses. That is why we decided to perform the in-situ phase transformation during arc melting process in arcMELTER. In addition to obtaining the feedstock for atomization which is unavailable at the market our team could test the properties of arc caster metal matrix composite which formed spectacular dendritic structure. These results demonstrate the potential of arc melting technology in the development of advanced metal matrix composites with optimized properties for demanding applications, such as aerospace and automotive industries. Further research will focus on refining the process to enhance material properties further and exploring the possibility of incorporating other ceramic reinforcements into Ti alloys and using them in additive manufacturing.