A new study for CH4 reforming to hydrogen and hydrogen storage was performed using magnesium-based alloy. MgH2-12Ni (with the composition of 88 wt% MgH2 + 12 wt% Ni) was prepared in a planetary ball mill by milling in hydrogen atmosphere (reaction-involved milling). X-ray diffraction (XRD) analyses were performed for the samples after reaction-involved milling and after reactions with CH4. The variation of adsorbed or desorbed gas with time was measured by a Sieverts’ type high-pressure apparatus at 773 K. The microstructures of the powders were observed using scanning transmission microscope (STEM) with energy-dispersive X-ray spectroscopy (EDS). The synthesized samples were also characterized using Fourier Transform Infrared (FT-IR) spectroscopy. XRD pattern of MgH2-12Ni after reaction with CH4 of 12 bar at 773 K and decomposition under 1.0 bar at 773 K exhibited phases of MgH2 and Mg2NiH4. This shows that reforming of CH4 was occurred, hydrogen produced after reforming of CH4 was then adsorbed on the particles, and hydrides were formed during cooling to room temperature. Ni and Mg2Ni formed during heating up to 773 K are believed to have brought about catalytic effects for reforming CH4. MgH2-12Ni adsorbed 0.8 wt% reformed CH4 within 1 min in a reaction with CH4 of 12 bar at 773 K and then desorbed 0.8 wt% reformed CH4 (hydrogen-containing mixture) within 1 min under 1 bar at 773 K. Attenuated total reflectance FT-IR spectroscopy (ATR-FTIR) spectra of MgH2-12Ni after reactions under 12 bar CH4 at 723 K and 773 K showed peaks of C-H bending, C=C stretching, O-H stretching, O-H bending, and C-O stretching.