This study utilizes molecular dynamics methods to embedded GNPs (graphene nanosheets) of uniform size and thickness into single crystal Mg, establishing a GNPs/Mg composite model. The mechanical properties and plastic deformation behavior of the composite under various compression conditions (volume fraction of GNPs, strain rate, and temperature) are investigated. The results indicate that uniformly distributed GNPs enhance load transfer and provide dispersion strengthening, effectively improving the composite's mechanical properties. As the volume fraction of GNPs increases, the yield stress of the composite first increases and then decreases. When the volume fraction of GNPs is 3.9%, both the yield stress and Young's modulus of the composite reach their maximum values of 9.16GPa and 108.83GPa, respectively. The uniformly dispersed GNPs constrain dislocations on prismatic and pyramidal planes, thereby suppressing twinning deformation. Consequently, dislocation slip predominantly occurs as 1/3<-1100> partial dislocations on the (0001) basal plane. Young's modulus is not sensitive to strain rate; as the strain rate increases from 0.0025Å·ps⁻¹ to 0.0125Å·ps⁻¹, the yield stress rises from 8.50GPa to 10.42GPa. At high strain rates, only some dislocation sources are activated, and the number of 1/3<-1100> partial dislocations decreases with increasing strain rate. Within the temperature range of 100K to 500K, both the elastic modulus and yield stress of the GNPs/Mg composite decrease with increasing temperature.