AZ91 alloy of magnesium is mostly used commercially among all magnesium alloys because it provides optimal combination of strength and ductility. In this work, AZ91 magnesium alloy was synthesized using under inert atmosphere of argon in stir casting furnace. Then AZ91-8%SiC composite was prepared with addition of 8 wt.% micron-sized SiC particles under an inert gas atmosphere, magnesium melting furnace. The microstructural properties of the magnesium alloy and its composite were examined by X-ray diffraction, optical microscopy, and scanning electron microscopy. Microstructural examination of the composites revealed a highly uniform dispersion of the reinforcing particles, along with substantial grain refinement. The β-phase Mg17Al12 precipitated in the AZ91 alloy matrix in the form of lamellar and massive structure. However, after addition of SiC particles, fully massive β-phase Mg17Al12 precipitation was formed which gives hardening to the material. Also, the incorporation of SiC particles resulted in increase in % elongation and hardness of the AZ91 composite material 73.33% as compared to the AZ91 magnesium alloy. But ultimate tensile strength and yield strength values was higher for the AZ91 magnesium alloy. These findings show that the AZ91-8%SiC composite may be acceptable for applications where enhanced hardness and ductility are preferred over tensile strength.