A　wet　powder　metallurgy　(WPM)　process　was　developed　to　disperse　carbon　nanotubes　(CNTs),　and　to　fabricate　the　CNTs　reinforced　Mg　matrix　(CNTs/Mg)　composite.　The　dispersion　effect　of　CNTs　were　evaluated　by　field　emission　scanning　electron　microscopy　(FE-SEM),　dynamic　light　scattering　(DLS)　and　high-resolution　transmission　electron　microscopy　(HR-TEM),　respectively.　Results　showed　that　the　CNTs　were　homogeneously　dispersed　on　the　surface　of　Mg　powder.　Adequate　bonding　and　good　interfacial　interaction　between　the　CNTs　and　Mg　matrix　contributed　to　the　efficient　load　transferring　from　the　CNTs　to　Mg　matrix　under　a　mechanical　force.　Furthermore,　no　brittle　MgO　was　formed　on　the　surface　and　it　was　beneficial　to　improving　the　adhesion　of　the　CNTs　to　Mg　matrix.　With　0.5　wt.%　CNTs　addition,　the　CNTs/Mg　composite　experienced　remarkable　enhancements　in　tensile　stress　of　28%　and　Young’s　modulus　of　24%.　The　reasons　responsible　for　these　enhancements　are　suggested　as　the　effective　dispersion　of　the　CNTs　and　the　good　interface　bonding　between　the　CNTs　and　Mg　matrix.　©　2018　Trans　Tech　Publications,　Switzerland.