The present work focuses on the development of multilayer graphene reinforced aluminium metal matrix composites by powder metallurgy followed by hot extrusion. Microstructure, grain size analysis and mechanical properties of hot extruded unreinforced aluminium and graphene reinforced aluminium composites are presented here. Microstructure shows uniform distribution of graphene throughout the matrix. Experimental results reveal significant increase in hardness as well as tensile strength of composite as compared to unreinforced aluminium. The improvements in properties are attributed to uniformly dispersed graphene sheets, an excellent interfacial bonding between graphene and aluminium matrix and grain refinement caused by the addition of graphene. Further, the strengthening mechanisms involved in the aluminum-graphene composite have been discussed. The fracture studies show the transition of ductile fracture in case of pure aluminium to brittle fracture in case of aluminium-graphene composites.