Polymer-derived in situ magnesium metal matrix composites (P-MMMCs) were fabricated by injecting a liquid or cross-linked polysilazane precursor into molten magnesium by a stir-casting method at two different melt temperatures of 700 and 800℃. Microstructural analysis reveals that the composites fabricated at 700℃ exhibit uni-modal grain size distribution having more or less columnar-shaped grain morphology. On the contrary, bi-modal grain size distribution with predominantly dendritic grain morphology occurs in the Mg matrix composites fabricated at 800℃. Such difference in grain morphology can be associated with variation in the availability of heterogeneous nucleation sites, and direction of heat flux during solidification. All of the fabricated composites were investigated for their solidification characteristics, microstructural evolution, micro/nano-hardness and compression properties. This article discusses the correlation between the processing parameters, microstructural evolution and mechanical properties of the as-cast in situ composites fabricated by liquid metallurgical route. Polymer-injection followed by in situ pyrolysis holds the potential of revolutionary processing technologies for producing castings of metal matrix nanocomposites, for example by bubbling the organic liquid with a carrier gas, e.g. nitrogen, into the molten metal by a Bessemer-like process.