Mg-3Al-1Zn-CNTs composites, with different weight fractions (0.25-1.0 wt%) of carbon nanotubes (CNTs) were successfully fabricated via a powder metallurgy method. The processing parameters were adopted in such a way to have uniform dispersion of short length CNTs without any damage, as well as refined and dissolved β phases structures throughout the composite matrix. The composite exhibited impressive increase in microhardness (about þ23%) and tensile failure strain value (about þ98%) without significant compromise in tensile strength, compared to the un-reinforced Mg-3Al-1Zn alloy. The synthesized composites can be used in automotive and aerospace industries due to their low density and high specific strength.