Fabrication industries are emerging to reduce and recycle waste scrap materials into useful products for various engineering applications such as domestic, structural, marine, and construction doors and windows. Most waste scrap materials are affected by soil and water pollution, resulting in unsuitable environmental living. This study is to fabricate the low‐cost and eco‐friendly Al‐ZrO2 alloy composite made with waste Al/Mg metal scrap microparticles through stir casting technique and the developed composite with 0 wt%, 5 wt%, 10 wt%, and 15 wt% of ZrO2 were studied its mechanical properties (ASTM). The synthesized composites' mechanical tensile strength, impact, and hardness were evaluated by ASTM test standard. The revealed experimental results were compared and an optimum sample was addressed. The optical micrograph studies revealed the metal particle presence. The sample 4 composite contained 15 wt% of ZrO2 particles and showed superior mechanical properties like 7.7%, 57.7%, and 13.66% improvement in tensile strength, impact toughness, and hardness compared to sample 1 without ZrO2 particles.