In the current work, composites of Al5083 aluminum alloy and carbon nanotubes were developed by friction stir processing. Grain size reduction was observed in the composite from a starting size of 115 μm±4.6 μm to 11 μm±3.3 μm. Higher hardness, yield strength and ultimate tensile strength were measured for the composite at the cost of losing ductility compared with friction stir processed Al5083 and base alloy. This behavior can be understood by considering the influence of grain size and carbon nanotubes. Machining studies carried out by conducting drilling experiments demonstrate decreasing cutting forces for the composite compared with friction stir processed Al5083. However, compared with base alloy, composite exhibited higher cutting forces at all of the cutting parameters. Corrosion behavior of the materials assessed by electrochemical tests demonstrates the promising effect of grain refinement on enhancing the corrosion resistance of friction stir processed Al5083. However, presence of carbon nanotubes marginally decreased the corrosion resistance of composite compared with friction stir processed Al5083. From the results, it can be understood that the addition of carbon nanotubes significantly enhance the mechanical properties and machinability. However, addition of carbon nanotubes on decreasing the corrosion performance is a noteworthy observation.