The development of metal matrix composites (MMCs) is one possibility to overcome the disadvantage of poor high temperature creep properties of present magnesium alloys. Short fiber reinforcement improves the high temperature creep resistance of magnesium alloys. Tensile and compressive creep properties of magnesium alloy AE42 (4 wt.% aluminium and 2 wt.% rare earths) reinforced with 20 vol.% alumina (Saffil®) fibers were investigated in the temperature range of 175-300 °C and stress range of 40-140 MPa, respectively. The MMC was manufactured by direct squeeze casting. The materials investigated show different behaviour depending on type of loading. Stress exponents were calculated from the stress dependence of the minimum creep rate in order to find indications for the possible mechanisms of deformation. The need of correcting the stress dependence of the minimum creep rate by a threshold stress was found. Electron microscopy was performed to investigate the fracture surface of a tensile creep specimen.