The decomposition pathway in LiBH4−MgH2 reactive hydride composites was investigated systematically as a function of pressure and temperature. Individual decomposition of MgH2 and LiBH4 is observed at higher temperatures and low pressures (T ≥ 450 °C and p(H2) ≤ 3 bar), whereas simultaneous desorption of H2 from LiBH4 and formation of MgB2 was observed at 400 °C and a hydrogen backpressure of p(H2) = 5 bar. The simultaneous desorption of H2 from LiBH4 and MgH2 without intermediate formation of metallic Mg could not be observed. In situ X-ray diffraction (XRD) and infrared (IR) spectroscopy reveal the present crystalline and amorphous phases.