Magnesium nanocomposites, with nano-scale ceramic reinforcements, have attracted a great deal of attention for several engineering and biomedical applications in the recent past. In this work, superparamagnetic iron oxide nanoparticles, Fe3O4, with their unique magnetic properties and the ability of being bio-compatible and non-toxic, are reinforced to magnesium to form Mg/(1, 2, and 3 wt %) Fe3O4 nanocomposites. These nanocomposites were fabricated using the conventional disintegrated melt deposition (DMD) technique followed by extrusion. Further, the materials were also processed using the novel turning-induced-deformation technique where the chips from turning process are collected, cold compacted, and hot extruded. The materials processed via the two techniques were compared in terms of microstructure and properties. Overall, the Mg/Fe3O4 nanocomposites, processed via both routes, exhibited a superior property profile. Further, the turning-induced deformation method showed promising results in terms of improved properties of the nanocomposites and serves as a great route for the recycling of metallic materials.