The study investigated the damage mechanisms in particle-reinforced metal matrix composites (PRMMCs). An integrated computational model is proposed to address this research gap by considering various failure modes, such as matrix cracking, reinforcement particle fracture, and matrix-particle interface decohesion. A two-dimensional (2D) nonlinear finite element model was crafted using ABAQUS/Explicit complemented by a Python script. This setup was employed to study the AA6061-T6 matrix reinforced with Al_2O_3 particles under indentation loading. A parametric study was conducted to examine the impacts of several factors. These include the particle volume fraction, distribution, size, shape, clustering, cohesive strength of the matrix-particle interface, and initial void volume fraction.