Mechanical milling presents an effective solution in producing a homogenous structure for composites. The present study focused on the production of 0.5 wt% yttria nanoparticle reinforced 7075 aluminum alloy composite in order to examine the effects of yttria dispersion and interfacial bonding by ball milling technique. The 7075 aluminum alloy powders and yttria were mechanically alloyed with different milling times. The milled composites powders were then consolidated with the help of hot pressing. Hardness, density, and tensile tests were carried out for characterizing the mechanical properties of the composite. The milled powder and the microstructural evolution of the composites were analyzed utilizing scanning and transmission electron microscopy. A striking enhancement of 164% and 90% in hardness and ultimate tensile strength, respectively, were found compared with the reference 7075 aluminum alloy fabricated with the same producing history. The origins of the observed increase in hardness and strength were discussed within the strengthening mechanisms' framework.