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Magnesium-based MMCs with their high stiffness-to-weight ratio bring a great interest to automotive and aerospace industries. Besides the enhanced mechanical properties of the MMCs, corrosion resistance is often a concern for applications being used in harsh environment. In this study, Magnesium alloy AM60 matrix composite reinforced with 7 vol%, 11 vol% and 22 vol% Al2O3 fibers were squeeze casted. The corrosion behavior in aqueous solutions containing 3.5% NaCl was investigated in comparison with magnesium alloy AM60. The scanning electron microscopy (SEM) was employed for the microstructure analysis of the composites and matrix alloy AM60 before and after corrosion test. The results show that the addition of Al2O3 fiber deteriorated the corrosion resistance of the matrix and the corrosion rate increases as the fiber volume fraction increased. The formation of the interfaces between the reinforcement and the matrix should be the primary mechanism for the corrosion to easily take place.