In the present research, the effect of thixoforming and age-hardening heat treatment on the microstructure and mechanical properties of un-modified and modified Al–20%Mg2Si composites produced through the strain-induced melt activation (SIMA) process has been investigated. This method showed promising potential for manufacturing the ideal microstructure, achieving globular grains, and enhancing mechanical properties. Quantitative analysis has revealed that adjusting the semi-solid heat treatment parameters to a temperature of 570 °C and a holding time of 25 min optimizes the globular α-Al grains and Mg2Si particles, achieving the size of 20.62 μm and 66.71 μm and the shape factor of 0.81 and 0.83 for Mg2Si particles and α-Al grains, respectively. The yield strength of the modified Al–20%Mg2Si composite increased by 23.67% and the ultimate tensile strength increased by 21.20%, compared to the un-modified specimen. Both composites underwent the thixoforming process, illustrating the ultimate tensile strength and elongation of 93.68 MPa and 4.32% for the original composite and 138.86 MPa and 7.29% for the modified composite. The modified Al–20%Mg2Si composite was subjected to the effective combination of thixoforming and age-hardening. According to the tensile test results, the yield strength, ultimate tensile strength, elongation, and toughness raised by 138.72%, 140.92%, 267.70%, and 471.12%, respectively, compared to the as-cast specimen. Moreover, its impressive hardness of 125.1HB contributes to its overall performance.