Single fiber pull-out tests were carried out to investigate the influence of water absorption on the interfacial properties of aramid/epoxy composite. Interfacial strength is severely weakened after 7-week immersion in hot water. In-situ observations of interfacial crack propagation by video microscope were performed and acoustic emission (AE) signals were analyzed at the same time. AE signals obtained during the pull-out process classified into four types of fracture processes: crack propagation, stick and slip, final unstable crack propagation and fiber breakage.