In this study, the effect of melt holding times for 15, 30, and 45 minutes at superheating temperatures of 200, 250, and 300 °C on the phase of Mg2SiP, eutectic Mg2SiE, Al5FeSi, Al5Mg8Si6Cu2, Al2Cu, nucleation temperature of these phases, and the hardness of Al-20Mg2Si-2Cu composite were examined. Microstructural observations and quantitative analysis showed that the best modification was achieved at superheating of 300 °C and a holding time of 15 minutes. Compared with the reference sample with 100 ° C superheating, the dendritic and coarse morphology of Mg2SiP particles changed to the fine polyhedral. The average particle size decreased dramatically from 1179 to 255.5 μm. Particle area and aspect ratio decreased by 83% and 13%, respectively. The number of particles per unit area increased from 9 to 57. Superheating converted the needle β-Fe to the β α-Fe Chinese script, although no significant change in the features of the Mg2SiE, Al5Mg8Si6Cu2, and Al2Cu phases was observed. A good correlation was found between the nucleation temperature and the microstructural transformation of the Mg2SiP phase. After implementing superheating of 300 °C for 15 minutes, the nucleation temperature of the Mg2SiP phase increased from 647.3 to 664.4 °C. The superheating treated composites showed higher hardness than the reference specimen, regardless of temperature and time. The highest hardness was obtained with 82.1 Vickers, which could be attributed to increasing the number of particles and reducing the distance between particles.