Metal matrix nanocomposites are attracting attention because of their great potential for improved mechanical properties and possible functionalization. These hybrid materials are often produced by casting processes, but they can also develop their property profile after hot working, e.g., by forging or extrusion. In this study, a commercial cast magnesium alloy AM60 was enriched with 1 wt.% AlN nanoparticles and extruded into round bars with varied extrusion rates. The same process was carried out with unreinforced AM60 in order to determine the influences of the AlN nanoparticles in direct comparison. The influence of extrusion speed on the recrystallization behavior as well the effect of nanoparticles on the microstructure evolution and the particle-related strengthening are discussed and assessed with respect to the resulting mechanical performance.