Ti‐reinforced AZ61 magnesium matrix composites, demonstrating enhanced strength and plasticity, are synthesized via powder metallurgy method, including mechanical milling and spark plasma sintering. This study investigates the evolution of microstructure and compressive mechanical properties of Ti/AZ61 composites across various Ti weight percentages: 0%, 5%, 10%, 15%, and 20%. The composites at 5, 10, 15, and 20 wt% Ti concentrations are effectively compacted, achieving relative densities of 99.1%, 99.4%, 98.7%, and 98.6%, respectively. The integration of Ti particles facilitates a refinement of the Mg grain size. The average Mg grain size in the AZ61 alloy is refined from 8.7 ± 3.6 to 7.2 ± 4.5 μm and 4.4 ± 2.2 μm upon the addition of 5 and 10 wt% Ti particles. Conversely, incremental Ti concentrations of 15 and 20 wt% result in minor increases in the average Mg grain size to 5.3 ± 2.6 and 5.7 ± 3.2 μm, respectively. Interfacial compounds, notably Al3Ti, are identified. Compressive mechanical properties, including compressive yield stress (CYS), ultimate compressive stress (UCS), and compressive failure strain (CFS), are synergistically enhanced with Ti particle incorporation. Optimal mechanical properties, specifically CYS at 250 MPa, UCS at 502 MPa, and CFS at 13%, are observed in the 10 wt% Ti/AZ61 composite. The enhanced compressive behavior is attributed to strong interfacial bonding between deformable Ti and Mg, effective load transfer, and grain refinement. Additional contributing factors include variations in the elastic modulus and thermal expansion coefficients between Ti and Mg. The fracture mechanisms observed in the Ti/AZ61 composites involve both ductile and brittle modes of failure.