Magnesium hybrid composites are a new class of lightweight metal matrix composites having excellent physical, mechanical, wear and corrosive properties. Hybrid magnesium matrix composites are fabricated using different combinations of reinforcements having basics properties like wear resistance and high strength of ceramics, self-lubricating of graphite, MoS2, CNT, and graphene, high thermal conductivity of carbon, diamond, and cubic boron nitride, and low cost of fly ash. This article presents an overview of different combinations of reinforcements used for fabrication of hybrid magnesium matrix composites and their effects on the mechanical and tribological properties of the hybrid materials. The major issues like agglomeration, interfacial phenomena, reinforcement-matrix bonding, and problems related to uniform distribution of particles are discussed in this article. Magnesium hybrid composites have the potential of satisfying the recent demands of aerospace, automobile, biomedical, defense, marine, and electronics industries. The future directions and potential research areas in the field of magnesium hybrid composites are also highlighted.