Carbon nanotube (CNT)-reinforced AZ31 matrix nanocomposites were successfully fabricated using a powder metallurgy method followed by hot extrusion. The influence of CNTs on microstructures, mechanical properties, and wear properties were systematically investigated by optical microscope (OM), scanning electron microscope (SEM), X-ray diffraction (XRD), hardness test, tensile test, and wear test. The results revealed that the nanocomposites showed a slightly smaller grain size compared with the matrix and uniform distribution that CNTs could achieve at proper content. As a result, the addition of CNTs could weaken basal plane texture. However, the yield strength and ultimate tensile strength of the composites were enhanced as the amount of CNTs increased up to 2.0 wt. %, reaching maximum values of 241 MPa (+28.2%) and 297 MPa (+6.1%), respectively. The load transfer mechanism, Orowan mechanism, and thermal mismatch mechanism played important roles in the enhancement of the yield strength, and several classical models were employed to predict the theoretical values. The effect of CNT content on the friction coefficient and weight loss of the nanocomposites was also studied. The relationships between the amount of CNTs, the friction coefficient, and weight loss could be described by the exponential decay model and the Boltzmann model, respectively.