In this study, Al-Y 2 O 3 nanocomposites were synthesized via mechanical alloying and microwave-assisted sintering. The effect of different levels of yttrium oxide on the microstructural and mechanical properties of the Al-Y 2 O 3 nanocomposites were investigated. The density of the Al-Y 2 O 3 nanocomposites increased with increasing Y 2 O 3 volume fraction in the aluminum matrix, while the porosity decreased. Scanning electron microscopy analysis of the nanocomposites showed the homogeneous distribution of the Y 2 O 3 nanoparticles in the aluminum matrix. X-ray diffraction analysis revealed the presence of yttria particles in the Al matrix. The mechanical properties of the Al-Y 2 O 3 nanocomposites increased as the addition of yttria reached to 1.5 vol. % and thereafter decreased. The microhardness first increased from 38 Hv to 81 Hv, and then decreased to 74 ± 4 Hv for 1.5 vol. % yttria. The Al-1.5 vol. % Y 2 O 3 nanocomposite exhibited the best ultimate compressive strength and yielded a strength of 359 ± 7 and 111 ± 5 MPa, respectively. The Al-Y 2 O 3 nanocomposites showed higher hardness, yield strength, and compressive strength than the microwave-assisted mechanically alloyed pure Al.