The characteristics of magnesium and its alloy have been expounded.The selection principle of the matrix and reinforcing phase of powder metallurgy magnesium composite has been introduced.The interfacial reaction between the different reinforcing particle and matrix has been introduced as well.Further more the principles,relative merits and the present research progress at home and abroad of the powder metallurgy magnesium matrix composites have been summarized.And the developing prospect of powder metallurgy magnesium matrix composites has been forecast.