The new processing method of spark plasma sintering (SPS) followed by hot extrusion was developed to produce Mg–1Al–xCNTs composites. Microstructural characterization revealed that the reinforcement particles were distributed uniformly in Mg matrix. The results of mechanical properties indicated a fact that compared with monolithic Mg, all Mg–1Al–xCNTs composites, especially the Mg–1Al–0.15CNTs composite, fabricated by SPS followed by hot extrusion exhibited better tensile and compressive properties. Under tension, Mg–1Al–0.15CNTs composite exhibited higher 0.2% tensile yield strength (TYS) (157 MPa versus 98 MPa, increased by ∼60%) and ultimate tensile strength (271 MPa versus 188 MPa, increased by ∼44%) than monolithic Mg. In compression, Mg–1Al–0.15CNTs composite also obtained a great enhancement in 0.2% compressive yield strength (118 MPa versus 81 MPa, increased by ∼46%) and ultimate compressive strength (321 MPa versus 255 MPa, increased by ∼26%) compared to monolithic Mg. Meanwhile, Mg–1Al–0.15CNTs composite maintained a high tensile failure strain of ∼8.8% and a high compressive failure strain of ∼17.9%.