Lightweight metals, alloys and composites are extremely attractive for weight critical applications in automotive; aerospace; electronics and transportation sectors. The addition of hybrid reinforcements may help to improve both strength and ductility of composites. In the present study, an attempt was made to simultaneously reinforce magnesium with aluminium and varying volume % of alumina nanoparticulates using liquid based casting technique followed by hot extrusion. Microstructural characterization studies revealed minimal porosity, good distribution of intermetallic second phase and good retention and distribution of alumina nanoparticulates. Overall, the tensile properties of the Mg-Al/Al2O3 nanocomposite exhibited enhanced 0.2% yield strength (~40%), ultimate tensile strength (~50%) and ductility (~52%) when compared to magnesium reinforced with similar volume % of Al2O3.