Aluminum alloy (AA2014) matrix composites reinforced by different weight percentage of aluminum oxide (Al2O3) in micro and nano sizes were fabricated through powder metallurgy route followed by hot extrusion process. Seven different aluminium composites with varying percentages of nano and micron sized alumina particles varying from 1% to 10% were evaluated in addition to monolithic alloy. The microstructure of nano-composite and monolithic alloys were examined by optical microscope and scanning electron microscope (SEM) equipped with an energy dispersive X-ray analysis (EDAX). In addition, the effects of weight fraction of the reinforcement matrix on mechanical properties were evaluated. The results have indicated that, a significant improvement in hardness of the nano composite was found in case of nano-composite with 8% of micro Al2O3 and 2% of nano Al2O3 particles by the addition of reinforcement.