In this study, Al2024 matrix composites reinforced with Al2O3 nanoparticle contents ranging from 1 to 5wt% were produced via a new method called as flake powder metallurgy (FPM). The effect of flake size and Al2O3 nanoparticle content on the reinforcement distribution, microstructure, physical, and mechanical properties of the composites were studied. SEM analysis was performed to investigate the microstructure of metal matrix and the distribution of nanoparticles. The hot-pressed density increased with decreasing the matrix size. The hardness of the Al2024-Al2O3 nanocomposites fabricated by using fine matrix powders increased as compared to the Al2024-Al2O3 nanocomposites produced by using coarse matrix powders. It has been found that the FPM method proposed in this study revealed to be an effective method for the production of nanoparticle reinforced metal matrix composites.