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CNTs have been used as reinforcements due to its excellent mechanical properties. However, the effect of magnetic field on the microstructure of Mg composites reinforced with nano-magnetic particles has not been well understood. For this reason, Mg matrix nanocomposites containing 0.5 wt.% CNTs coated with Fe3O4 was fabricated using stirring casting method by applying a unilateral magnetic field and the microstructure of the composites was investigated. The magnetic field is effective for the movement of CNTs coated with Fe3O4 in molten Magnesium alloy. More shrinkage cavities were found in the region closed to the magnetic source. Meanwhile, the magnetic response of CNTs coated with Fe3O4 in liquid magnesium alloy was validated.