Graphene has been proved to be an excellent enhancer in metal matrix composites. Core-shell structured SiC nanoparticles and graphene nanosheets (GNSs) were fabricated and incorporated into aluminum matrix using ball milling in the current study. Graphite powder was exfoliated into thin GNSs, which are flexible to wrap SiC nanoparticles. The ductile aluminum particles were firstly flattened and then repeatedly welded and fractured into equalized particles during the ball milling of Al alloy-SiC-GNSs composite powder, which were observed using scanning electron microscopy and X-Ray diffraction. SiC-GNSs were embedded and dispersed into the aluminum matrix during the milling process.