This paper explores new approaches in design and fabrication of novel composite materials in order to increase corrosion and wear resistance. By mimicking nature, nacreous particles from seashells were used as reinforcement in an aluminum matrix. A powder metallurgy process was developed to fabricate the nacreous-reinforced-aluminum matrix composites. Mechanical properties, corrosion, and wear resistance were characterized. Experimental results showed that the corrosion resistance increases as the nacreous concentration increases. The hardness and wear resistance increased by up to 22% and 10%, respectively. With oxidation of aluminum during heat treatment, the mentioned properties were further improved by about 32–37%.