This study addresses the critical challenges of interfacial stress mismatch, fiber degradation, and unstable clad geometry in manufacturing continuous carbon fiber-reinforced aluminum composites (Cf/Al) via laser cladding, driven by rapid thermal gradients. A dual-ellipsoid heat source-based thermoelastic–plastic finite element model was developed in Abaqus, integrating phase-dependent material properties and latent heat effects to simulate multi-physics interactions during single-track deposition, resolving transient temperature fields peaking at 1265 °C, and residual stresses across uncoated and Ni-coated fiber configurations. The work identifies an optimal parameter window characterized by laser power ranging from 700 to 800 W, scan speed of 2 mm/s, and spot radius of 3 mm that minimizes thermal distortion below 5% through gradient-controlled energy delivery, while quantitatively demonstrating nickel interlayers’ dual protective role in achieving 42% reduction in fiber degradation at 1200 °C compared to uncoated systems and enhancing interfacial load transfer efficiency by 34.7%, thereby reducing matrix tensile stresses to 159 MPa at fiber interfaces. Experimental validation confirms the model’s predictive capability, revealing nickel-coated systems exhibit superior thermal stability with temperature differentials below 12.6 °C across interfaces and mechanical interlocking, achieving interfacial void fractions under 8%. These results establish a process–structure linkage framework, advancing defect-controlled composite fabrication and providing a digital twin methodology for aerospace-grade manufacturing.