Powder metallurgy method was used to synthesize Mg-3Al-1Zn-(1.5Al2O3-xSiC) composites, to investigate the influence of Al2O3 and SiC hybrid particles on mechanical properties of magnesium alloy. The mechanical characterization of as-extruded composites demonstrated enhanced 0.2% yield strength, and ultimate strength, and reduced fracture strain (Strain at fracture) values both in tension and compression loading. The micro hardness (Vickers hardness, Hv) of composites was increased with increasing reinforcement particles contents. The mechanical characterization of heat treated samples indicated the enhanced fracture strains and reduced microhardness, 0.2% tensile yield strength, ultimate tensile strength. The enhanced fracture strains of heat treated sample are attributed to the dissolved Mg17Al12 intermetallic phases in the matrix. An attempt is made to narrate the effect of heat treatment, presence of Al2O3 and SiC hybrid particles, and their increasing amount on microstructural and mechanical properties of magnesium alloy.