The alumina graphite composite were successfully prepared by powder metallurgy technique. Through this method low energy milling machine was used. The effect of the microstructural and compaction were determined according to different milling time in this study. The different milling time that involved were 15, 30, 45 and 60 h and the different compaction pressure were 200, 400, 600 and 800 MPa. Properties of the milled powders covered a green density results follow up with densification parameter. As the high milling time, the pattern of the graphite and alumina diminished and become wider due to the well homogenizing powders during milling. Crystallite size decrease due to high milling time and the optimum milling time was determined at 45 h. Microstructure of the milled powders with different hours of milling resulting the changing size of particle become smaller, finer grain size produced as higher time of milling powders.