In the present study, Mg nanocomposites with a high volume fraction (10 vol %) of SiC particles were fabricated by two approaches: mechanical milling and mixing, followed by the powder consolidation steps, including isostatic cold pressing, sintering, and extrusion. A uniform distribution of the high content SiC particles in a fully dense Mg matrix with ultrafine microstructure was successfully achieved in the mechanically milled composites. The effect of nano- and submicron-sized SiC particles on the microstructure and mechanical properties of the nanocomposites was evaluated. Scanning electron microscopy (SEM), transmission electron microscopy (TEM), energy dispersive spectrometer (EDS), and X-ray diffractometry (XRD) were used to characterize microstructures of the milled and mixed composites. Mechanical behavior of the Mg composites was studied under nanoindentation and compressive loading to understand the effects the microstructural modification on the strength and ductility of the Mg/SiC composites. The mechanical properties of the composites showed a significant difference regarding the size and distribution of SiC particles in the Mg matrix. The enhanced strength and superior ductility achieved in the mechanically milled Mg composites are mainly ascribed to the effective load transfer between matrix and SiC particles, grain refinement of the matrix, and strengthening effects of the nano- and submicron-sized SiC particles.