Inside a scanning electron microscope (SEM) chamber, we performed an in situ interlaminar shear test on a z-pinned carbon fiber-reinforced aluminum matrix composite (Cf/Al) fabricated by the pressure the infiltration method to understand its failure mechanism. Experiments show that introducing a stainless-steel z-pin increases the interlaminar shear strength of Cf/Al composite by 148%. The increase in interlaminar shear strength is attributed to the high strength of the stainless-steel z-pin and the strong bonding between the z-pin and the matrix. When the z-pin/matrix interface failed, the z-pin can still experience large shear deformation, thereby enhancing delamination resistance. The failure mechanism of composite includes interfacial debonding, aluminum plough, z-pin shear deformation, frictional sliding, and fracture. These results in this study will help us understand the interlaminar strengthening mechanism of z-pins in the delamination of metal matrix composites.