In present study, elemental magnesium was reinforced with nano-size alumina particles (50-nm). The composite samples were synthesized using the technique of powder metallurgy and the effect of extrusion temperature and sintering on the end properties was particularly investigated. The results of microstructural characterization studies confirmed the presence and reasonably uniform distribution of alumina particles. Results obtained from extruded unsintered samples revealed that the hardness and dimensional stability of magnesium increases with an increasing presence of alumina particles while the 0.2%YS, UTS and ductility deteriorated. Results further revealed that including sintering step and extruding at higher temperature lead to an increase in dimensional stability, hardness, 0.2%YS, UTS and ductility for an alumina content as low as one percent by weight.