The eutectic Mg-23.5%Ni alloy was casted by melting and solidification. The powders of Mg-23.5%Ni and (Mg-23.5%Ni)-10% iron oxide were prepared by mechanical grinding of casted Mg-Ni alloy and casted Mg-Ni alloy+oxide, respectively. As milling time increases, hydriding and dehydriding rates of Mg-Ni and Mg-Ni-oxide alloy powders increase. The additions of iron oxide to Mg-Ni alloy and Mg-Ni-oxide increase hydriding rates and slightly decrease dehydriding rates.