CNTs-Al matrix composites are considered to be promising heat dissipating materials because thermal conductivity can potentially be improved whilst their density is reduced. Although casting has many advantages in the fabrication of large, complex components, this process cannot be easily employed when manufacturing CNTs-Al composites. In order to produce CNTs-Al matrix composites by casting a CNTs-Al powder precursor was manufactured using mechanical milling and electroless plating processes. Aluminium powder with CNTs of 10 wt.% and 20 wt.% were mixed and ball milled using a horizontal mill. After milling for 3 hrs., the milled powder exhibits a flattened morphology with a band-type distribution of CNT clusters observed within the aluminium particles. Prolonged milling of up to 24 hrs. introduces an equiaxed particle shape for the milled powders with a uniform distribution of CNTs within the aluminium particles. However, as milling time increases, the CNTs become fractured by ball-to-ball collisions. There was no reaction evident between the aluminium and the CNTs at milling times up to 24 hrs. In order to improve the wettability between the CNTs-Al powder precursor and Al melt during the casting process, electroless Ni plating was performed. The processing time for the Ni-plating affects the uniformity of the coating layer. For a uniform coating condition, the average thickness of the coating was ~1.87 μm, with no evidence of gaps between the milled powders and coatings observed.