The effect of Mg content and milling time were investigated on the microstructure and microhardness values of Al-xMg/5Al2O3 (x = 0, 4, 8 and 12 wt %) nanostructured composite prepared via high energy milling technique. XRD results showed an acceleration of alloying process and formation of Al (Mg) ss by enhancing percentage of Mg element. Also, by increase in Mg percentage the grain size reduction was more considerable during milling treatment. Additionally, increment of the Mg content up to 12 wt%, causes the increase in micro-strain of the samples (from 0.31 to 0.82%). Increase in Mg concentration accelerates the mechanical milling process. According to SEM results a coaxial and circular morphology with a uniform distribution of powder particles has been formed. Up to 12 wt% (for each milling time), significant increase in microhardness (215 HV) was carried out due to solid solution hardening and crystallite refinement. From 10 to 15 h, a slight increase in microhardness up to 218 HV can be observed.