The primary objective of the present research was to provide a fundamental understanding of the processing science necessary to fabricate the Aluminum Nitride (AIN) reinforced Aluminum-Magnesium (AIMg) composites via Reactive Gas (N2) Injection in the AIMg alloy melt. Aluminum nitride (AlN) matrix composites were prepared by a novel approach. It was possible to produce a considerable amount of AIN particles in the AI alloy matrix at a reaction temperature as low as 900 °C utilizing the in-situ nitration reaction process developed in the present study.