In this study, nano-AlN particles were introduced into pure Mg matrix through the powder metallurgy technique incorporating microwave assisted two-directional sintering followed by hot extrusion. The effect of varying volume fraction of nano-AlN addition on the microstructural and mechanical properties of pure Mg was investigated. Microstructural characterisation revealed marginal grain refinement due to the fairly uniform distribution of AlN nano-particulates. X-ray diffraction results indicated basal texture weakening in Mg/0?2AlN composite. Tensile property measurements revealed an overall increase in strength properties and ductility. Among the developed composites, Mg/0?8AlN displayed superior strength (y30% improvement) and Mg/ 0?2AlN showed enhanced ductility (y80% enhancement). Under compressive loading, the developed Mg/AlN nanocomposite formulations exhibited improved strength properties without significant effect on compressibility.