In this study, AZ91 and SiC particulates reinforced AZ91 (SiCp/AZ91) magnesium alloys were successfully fabricated using rapid solidification/powder metallurgy technique followed by hot extrusion. Microstructural evolution and mechanical properties of the monolithic AZ91 and SiCp/AZ91 magnesium alloys were evaluated. SiC particulates were well distributed with only few agglomerated particles. The porosity level and microhardness increased as SiCp content increased because the increased surface area of SiCp, harder ceramic phases and SiCp acted obstacles to the motion of dislocations. In addition, an increase in particulate reinforcement content was observed to decrease mechanical properties of the composite compared with the unreinforced counterpart due to increasing agglomerating regions and porosity, brittle interface debonding between matrix and SiCp.