We report magneto-transport and magnetic properties of (1–x)La 0.7 Ca 0.3 MnO 3 +xAl 2 O 3 composites synthesized through a solid-state reaction method combined with a high energy milling method. Most interestingly, the effective magnetic anisotropy is found to decrease with increase in the non-magnetic insulating Al 2 O 3 phase fraction in the composites. In addition, we observed that the magnitude of low-field magnetoresistance arising from spin-polarized tunneling of conduction electrons, as well as that of high-field magnetoresistance, displays a Curie–Weiss law-like behavior. Finally, we found that the temperature dependence of low and high-field magnetoresistance is controlled predominantly by the nature of temperature response of surface magnetization of the particles.