The effects of variation in aluminium oxide nanoparticles in aluminium-based metal matrix composite on the compressive and sliding wear deformation have been investigated. The compressive and sliding wear resistance of the composite increase significantly with the addition of nanoparticles in the matrix. The 5% aluminium oxide nanoparticles in the composite were found to be the optimal weight fraction of added nanoparticles that produced higher static yield strength, hardness, scratch resistance and lower material loss in wear in the composite. The addition of nanoparticles, beyond 5% weight fraction, in the matrix showed adverse effects in the performance of the composite due to its higher brittleness. The effects on wear properties of the composite with added nanoparticles beyond optimal weight fraction were more detrimental than those with lower weight fraction of nanoparticles.