An attempt is being made to develop nano particles reinforced metal matrix composites using powder metallurgy process. Uniform distribution of particles was achieved by sonication of reinforcement for distribution of Carbon nano tube (CNT). FESEM has shown the distribution with particle size conforming nano size and uniformity of distribution. Mechanical properties like radial compressive strength, microhardness, thermal and electrical conductivity were evaluated. Radial compression testing was carried out to see the influence of CNT on aluminium alloy and also evaluate the bonding phenomena. Electrical conductivity of these composites were also evaluated and presented. The findings results in guiding to select the reinforcement to achieve the desired properties.