Magnesium alloy (AZ31) based metal matrix composite reinforced with carbon nanotubes (CNTs) was fabricated using the technique of disintegrated melt deposition followed by hot extrusion. In this research paper, the microstructure, hardness, tensile properties, tensile fracture, high cycle fatigue characteristics, and final fracture behavior of CNTs-reinforced magnesium alloy composite (denoted as AZ31/1.0 vol.% CNT or AZ31/CNT) is presented, discussed, and compared with the unreinforced counterpart (AZ31). The elastic modulus, yield strength, tensile strength of the reinforced magnesium alloy was noticeably higher compared to the unreinforced counterpart. The ductility, quantified both by elongation-to-failure and reduction in cross-section area of the composite was higher than the monolithic counterpart. A comparison of the CNT-reinforced magnesium alloy with the unreinforced counterpart revealed a noticeable improvement in cyclic fatigue life at the load ratios tested. At all values of maximum stress, both the reinforced and unreinforced magnesium alloy was found to degrade the cyclic fatigue life at a lower ratio, i.e., under conditions of fully reversed loading. The viable mechanisms responsible for the enhanced cyclic fatigue life and tensile behavior of the composite are rationalized in light of macroscopic fracture mode and intrinsic microscopic mechanisms governing fracture.