Aluminum based metal matrix composites are devoting more interest towards multiple applications due to their good thermal and mechanical properties. At this study, composites of AlMg5/ZrO2 with multiple gradients of ZrO2, were manufactured using stir casting technique. Microstructure, hardness and tribological properties of the composite were investigated. Pin-on-disk technique was used under wet conditions (3.5 wt. % NaCl solution) at different sliding speeds (varied from 0.125 to 0.5 ms-1) and applied loads (varied from 5 to 20N). Microstructure and X-Ray Diffraction (XRD) analysis show that the composites AlMg5/ZrO2 were successfully manufactured via stir casting with a uniform distribution of ZrO2 particles. The results revealed that the hardness and wear resistance of the investigated alloy significantly increased by incorporating ZrO2 up to 10 wt.%, beyond this value the hardness and wear resistance diminished but still higher than the base alloy. Further, the outcomes showed that the dominant wear mechanism in AlMg5 alloy and its composite was the abrasive wear.