The reverse magnetization behavior for bulk composite alloys containing Mn-Al-C and α-Fe nanoparticles (NPs) has been investigated by hysteresis loops, recoil, and first-order reversal curves (FORC) analysis. The effect of adding different percentages of α-Fe (5, 10, 15, and 20 wt. %) on the magnetic properties and demagnetization behavior of Mn-Al-C nanostructured bulk magnets was investigated. The fabricated nanocomposites were characterized by XRD and VSM for structural analysis and magnetic behavior investigations, respectively. The demagnetization curve of the sample Mn-Al-C-5wt. % α-Fe showed a single hard magnetic behavior and showed the highest increase in remanence magnetization compared to the sample without α-Fe, and therefore this combination was selected as the optimal composition for FORC analysis. Magnetic properties for Mn-Al-C-5 wt. % α-Fe nanocomposite were obtained as M_s = 75 emu/g, Mr = 46 emu/g, Hc = 3.3 kOe, and (BH)_max = 1.6 MGOe, indicating a much higher (BH)_max than the sample with no α-Fe. FORC analysis was performed to identify exchange coupling for the Mn-Al-C-0.05α-Fe nanocomposite sample. The results of this analysis showed the presence of two soft and hard ferromagnetic components. Further, it showed that the reverse magnetization process in the composite sample containing 5 wt. % α-Fe is the domain rotation model.