In the present study, Ni50Ti50 (NiTi) particle reinforced aluminum nanocomposites were fabricated using microwave sintering and subsequently hot extrusion. The effect of NiTi (0, 0.5, 1.0, and 1.5 vol %) content on the microstructural, mechanical, thermal, and damping properties of the extruded Al-NiTi nanocomposites was studied. Compared to the unreinforced aluminum, hardness, ultimate compression/tensile strength and yield strength increased by 105%, 46%, 45%, and 41% while elongation and coefficient of thermal expansion (CTE) decreased by 49% and 22%, respectively. The fabricated Al-1.5 NiTi nanocomposite exhibited significantly higher damping capacity (3.23 × 10−4) and elastic modulus (78.48 ± 0.008 GPa) when compared to pure Al.