Deformation-processed metal-metal composites (DMMC) of Mg-Li alloys containing steel reinforcing fibers were prepared by infiltrating a preform of steel wool with the molten matrix. The Li content was varied to control the crystal structure of the matrix; Mg-4 wt pct Li is hexagonal close packed (hcp), while Mg-12 wt pct Li is body-centered cubic (bcc). The low carbon steel used as the reinforcing fiber is essentially bcc. The hcp/bcc and bcc/bcc composites were subsequently deformed by rolling and by extrusion/swaging and mechanically tested to relate the tensile strength of the composites to true deformation strain. The hcp/bcc composites had limited formability at temperatures up to 400 °C, while the bcc/bcc composites had excellent formability during sheet rolling at room temperature but limited formability during swaging at room temperature. The tensile strengths of the hcp/bcc composite rod and the bcc/bcc composite sheet and rod increased moderately with deformation, though less than predicted from rule-of-mixtures (ROM) calculations. This article presents the experimental data for these DMMC materials and comments on the possible effect of texture development in the matrix and fiber phases on the deformation characteristics of the composite material.