The microscale deformation behaviour of the Al-4.5Cu-2Mg alloy has been studied to understand the influence of various processing routes and conditions, i.e. the gravity casting with and without grain refiner, the rheocast process and the strain induced melt activation (SIMA) process. The micromechanics based simulations have been carried out on the optical microstructures of the alloy by 2D representative volume elements (RVEs) employing two different boundary conditions. Microstructural morphology, such as the grain size, the shape and the volume fraction of α-Al and binary eutectic phases have a significant effect on the stress and strain distribution and the plastic strain localization of the alloy. It is found that the stress and strain distribution became more uniform with increasing the globularity of the α-Al grain and the α-Al phase volume fraction. The simulated RVEs also reveals that the eutectic phase carries more load, but least ductility with respect to the α-Al phase. The SIMA processed alloy contains more uniform stress distribution with less stress localization which ensures better mechanical property than the gravity cast, grain refined and rheocast alloy.