The present study investigated the effects of alloying and nano-reinforcement on the mechanical properties (microhardness, tensile strength, and compressive strength) of Mg-based alloys and composites. Pure Mg, Mg-3Sn alloy, and Mg-3Sn+0.2GNP alloy-nanocomposite were synthesized by powder metallurgy followed by hot extrusion. The microstructural characteristics of the bulk extruded samples were explored using X-ray diffraction, field-emission scanning electron microscopy, and optical microscopy and their mechanical properties were compared. The microhardness, tensile strength, and compressive strength of the Mg-3Sn alloy improved when compared to those of monolithic Mg sample and further improvements were displayed by Mg-3Sn+0.2GNP alloy-nanocomposite. No significant change in the compressive strain to failure was observed in both the alloy and the alloy-nanocomposite with respect to that of the pure Mg sample. However, an enhanced tensile strain to failure was displayed by both the alloy and the alloy-nanocomposite.