In this paper the intrinsic influence of micron-sized nickel particle reinforcements on microstructure, micro-hardness tensile properties and tensile fracture behavior of nano-alumina particle reinforced magnesium alloy AZ31 composite is presented and discussed. The unreinforced magnesium alloy (AZ31) and the reinforced nanocomposite counterpart (AZ31/1.5 vol.% $Al_2O_3$/1.5 vol.% Ni] were manufactured by solidification processing followed by hot extrusion. The elastic modulus and yield strength of the nickel particle-reinforced magnesium alloy nano-composite was higher than both the unreinforced magnesium alloy and the unreinforced magnesium alloy nanocomposite (AZ31/1.5 vol.% $Al_2O_3$). The ultimate tensile strength of the nickel particle reinforced composite was noticeably lower than both the unreinforced nano-composite and the monolithic alloy (AZ31). The ductility, quantified by elongation-to-failure, of the reinforced nanocomposite was noticeably higher than both the unreinforced nano-composite and the monolithic alloy. Tensile fracture behavior of this novel material was essentially normal to the far-field stress axis and revealed microscopic features reminiscent of the occurrence of locally ductile failure mechanisms at the fine microscopic level.