Magnesium (Mg) composite reinforced with carbon nanotubes (CNTs) having superior mechanical properties was fabricated using both pure Mg and AZ61 Mg alloy matrix in this study. The composites were produced via powder metallurgy route containing wet process using isopropyl alcohol (IPA) based zwitterionic surfactant solution with unbundled CNTs. The produced composites were evaluated with tensile test and Vickers hardness test and analyzed by X-ray diffraction (XRD) and field-emission scanning electron microscopy (FE-SEM) equipped with energy dispersive spectroscopy (EDS) and electron back scattered diffraction (EBSD). As a result, only with AZ61 Mg alloy matrix, tensile strength of the composite was improved. In situ formed Al2MgC2 compounds at the interface between Mg matrix and CNTs effectively reinforced the interfacial bonding and enabled tensile loading transfer from the Mg matrix to nanotubes. Furthermore, it was clarified that the microstructures and grain orientations of the composite matrix were not significantly influenced by CNT addition. (C) 2011 Elsevier B.V. All rights reserved.