<p>Magnesium alloy composites exhibit distinct properties, including a high strength-to-weight ratio, enhanced structural stability, and improved ductility, making them suitable for manufacturing automotive structural components via the liquid state method. It is familiar with complex shape design, economics, and assists in mass production. However, oxidation and lack of wettability influence microporosity and agglomeration formation, resulting in variations in the mechanical properties of composites. The present research aims to overcome the above difficulties and enrich the functional characteristics of magnesium alloy (AZ91D) composites embedded with 1, 3, and 5% weight percentages of zirconium dioxide (ZrO₂) particles (5 µm) via the permanent mould die-cast process. During the process, 0.5% calcium is added to enhance the fluidity, and the composites are processed with a constant stir speed (400 rpm). The argon-inert nature helps to better particle dispersion and reduce porosity. The effect of the wt% die casting process, combined with a wettability agent (0.5% calcium) and an argon-inert atmosphere, on the surface morphology, grain size, mechanical properties, porosity percentage, and density of AZ91D-ZrO_2, is investigated. Microstructural studies revealed that the particles are evenly dispersed in the AZ91D alloy matrix. Applying a uniform stir speed, along with 0.5% calcium and an argon atmosphere, resulted in a high-quality composite with limited microporosity and agglomeration of the developed composite. Moreover, the AZ91D/5 wt% ZrO₂ composite found reduced grain size (35.1 µm), higher yield (215 MPa) and tensile strength (298 MPa), reduced elongation 4.1%, higher microhardness (79 HV), better impact toughness (13.7 J/mm²), and reduced porosity % (0.88 %) with marginal enhancement in actual density (1.98 g/cc).</p>