More focus has recently been placed on enhancing the strength, elastic modulus, coefficient of thermal expansion (CTE), wear and corrosion resistance, and other qualities of aluminum (Al) alloys by varying the quantity of ceramics added for a range of industrial uses. In this regard, Al-4.2-Cu-1.6Mg matrix nanocomposites reinforced with nano-ZrO2 particles have been created using the powder metallurgy approach. The microstructure and particle size distributions of the produced powders were analyzed using a diffraction particle size analyzer, XRD, TEM, and SEM. To achieve good sinterability, the powders were compacted and sintered in argon. The sintered nanocomposites' mechanical, elastic, and physicochemical characteristics were measured. Additionally, the behavior of corrosion, wear, and thermal expansion were examined. The results showed a decrease in the particle sizes of the Al-Cu-Mg alloy by adding ZrO2 nanoparticles up to 45.8 nm for the composite containing 16 wt.% ZrO2. By increasing the sintering temperature to 570 °C, the densification of nanocomposites was enhanced. Also, the coefficient of thermal expansion and wear rate remarkably decreased by about 28 and 37.5% by adding 16 wt.% ZrO2. Moreover, microhardness yield, strength, and Young’s modulus were enhanced to 161, 145, and 64%, respectively, after adding 16 wt.% ZrO2. In addition, increasing the exposure time was responsible for decreasing the corrosion rate for the same sample.