Mg and Mg-based alloys are promising hydrogen storage alloys for renewable clean energy applications. It is a lightweight and low cost material with high hydrogen storage capacity. However, commercial applications of the Mg hydride are currently hindered by its high absorption/desorption temperature, and very slow reaction kinetics. In this work, we aim to study the absorption properties of the $Mg_2Ni$-5mass% Nb composite prepared by mechanical alloying under hydrogen. The absorption capacity of the sample is found to be about 3.0 wt.% at T=573 K and P=1.0 MPa. The absorption characteristics observed have been compared with those of the prepared $Mg_2Ni$.