In the present study, (10%$Al_2O_3$+5%Si)/AZ91 Mg hybrid composite was fabricated using the squeeze casting method. During squeeze casting, molten Mg was infiltrated into the preform of 10%$Al_2O_3$+5%Si and reaction product of $Mg_2Si$ intermetallic compound was formed by the reaction between molten Mg and Si powder. Microstructure has been observed and mechanical properties were evaluated for the reaction squeeze cast (RSC) hybrid composite. It was found that Si powder totally reacted with molten Mg to form $Mg_2Si$. Reinforcement ($Al_2O_3$) and the reaction product ($Mg_2Si$) are fairly uniformly distributed in Mg matrix for the squeeze cast hybrid composite. Mechanical properties were improved with hybridization of reinforcements, namely higher hardness and enhanced wear resistance comparing squeeze cast (15%$Al_2O_3$)/AZ91 Mg composite.