The effect of varying amounts of scandium (Sc) on the mechanical performance and corrosion resistance of aluminum alloy (AA7085) composites reinforced with Zirconium diboride (ZrB2) and Aluminum oxide (Al2O3) nanoparticles was investigated. The specimens were made using an in-situ process with varying amounts of Sc up to 0.5 wt%, and their microstructural behavior, corrosion, and mechanical properties were explored in detail. Phase structural analysis revealed the successful incorporation of ZrB2 and Al2O3 into the matrix through in-situ synthesis, ranging from 30 to 61.7 nm. In addition, HRTEM and XRD analysis displays the Al3Zr prominence observed with 0.1 wt% Sc content, transforming to Al3(Sc, Zr) in the 0.3 wt% Sc composite, and finally becoming Al3Sc with 0.5 wt% Sc. Corrosion analysis revealed that the 0.3 wt% Sc composite exhibited fine Al3(Sc, Zr) precipitate phases that enhanced corrosion properties. The Sc addition leads to a significant improvement in the mechanical properties of AA7085/ZrB2+Al2O3 composites. The ultimate tensile strength of 678 ± 5 MPa for 0.5 wt% Sc under the hot rolled and T6 aged condition was achieved. The optimum content of Sc in AA7085/ZrB2+Al2O3 composites has identified both corrosion and mechanical properties enhancement at 0.3 wt% and 0.5 wt%, respectively.